Company AA and company BB each need $1 million in funds and are quoted the following rates in the fixed and floating markets. AA agrees to borrow at the fixed-rate and BB agrees to borrow at the floating-rate. Show all calculations. Debt market Fixed rate funds 6.4% Variable rate funds BBSW - 296 BBSW + 2.29 AA BB 5.4% Required: a) Structure a swap which allows the two companies to share the differential benefit equally, (8 marks) b) What fored rate would AA receive from BB if they negotiated to receive 75% share of the differential? c) Why would a swap be arranged even if the differential is zero. (3 marks) d) list and briefly explain the three basic types of swaps (6 marks [2 marks