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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 11.8 percent and floating at LIBOR+0.7 percent. Company B can borrow fixed at 10.4 percent and floating at LIBOR+0.0 percent. If a financial intermediary charges a fee of 0.14 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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