Question
Company A, a British manufacturer, wishes to borrow U.S. $ at a fixed rate of interest. Company B, a U.S. multinational, wishes to borrow sterling
Company A, a British manufacturer, wishes to borrow U.S. $ at a fixed rate of interest.
Company B, a U.S. multinational, wishes to borrow sterling at a fixed rate of interest.
They have been quoted the following rates per annum. Design a swap that will appear
equally attractive to both companies and draw the cash flow chart.
| Sterling | U.S. Dollars | |
| A | 11% | 7% |
| B | 10.6% | 6.2% |
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Financial And Insurance Formulas
Authors: Tomas Cipra
2010th Edition
3790829013, 978-3790829013
