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Company T and F are looking to borrow $20 million over five years. Fixed rate Floating rate 5.1% LIBOR Company-T Company-F 6.1% LIBOR + 0.6%
Company T and F are looking to borrow $20 million over five years. Fixed rate Floating rate 5.1% LIBOR Company-T Company-F 6.1% LIBOR + 0.6% Company T wants to borrow Floating rate, while Company F wants to borrow Fixed rate. The two companies directly sign a swap contract without a bank. Design a swap that the profits of the two companies are equal
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