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Companies X and Y have been returning the following rates per year on a $5 million 10-year investment : Fixed rate Floating rate Company X

Companies X and Y have been returning the following rates per year on a $5 million 10-year investment:

Fixed rate Floating rate
Company X 8.0% LIBOR
Company Y 8.8% LIBOR + 0.2%

Company X requires a fixed-rate investment; company Y requires a floating-rate investment.

Design a swap with graph that will net a bank, acting as intermediary, 0.1% per annum and that will appear equally attractive to both companies. (The final swap is not unique. as long as it is logical, I count it right)

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