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Companies X and Y face the following rates below. Assume that X wants to invest in USD fixed and Y wants to invest in NZD

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Companies X and Y face the following rates below. Assume that X wants to invest in USD fixed and Y wants to invest in NZD fixed. A financial institution will arrange the swap for 20 basis points. - Design a swap that will be equally attractive to X and Y. What rates will X and Y end up receiving? - Who bears the F/X risk? - What is the Fl spread? Should this be expected to increase or decrease over time? Why

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