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Company A can borrow fixed at 1 1 . 8 percent and floating at LIBOR + 0 . 7 percent. Company B can borrow fixed
Company A can borrow fixed at percent and floating at LIBOR percent. Company B can borrow fixed at percent and floating at LIBOR percent. If a financial intermediary charges a fee of percent, what is the gain to each party to the swap?Assume the gain is evenly split between the two parties.
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