company A wishes to borrow Yen at a fixed rate of interest. Company B wishes to borrow pollars at a fixed rate of in current exe tax effects) The amounts f rate. They have been required by two companies are roughly the same at quoted the following rates per annum (adjusted for differential Company A Company B Yen 8.6% 7.0% US Dollars 46% 4.3% You are designing a swap that will net the financialintermedi differences). ary 0.3% per annum (ignore the currency a) How much each company may gain from the SWAP? (S points) eh:8.6-7.. 6 Bune cut stez 13ea.un4 6) showing the interest payments under the swap in which all foreign exchange risk is ake sure to write down, interest rates that each party is paying (and/or receiving) a b) Plot a diagram by the bank. M and to draw appropriate arrows that show the direction of payment. (10 points)