Consider the first national bank and the friendly finance company in the book (Both balance sheets attached). Is there an interest rate swap that might benefit these two companies in terms of reducing their respective interest rate risk? design one and show here.

wake a look at Une balance Sneet ol ll Le r St Nauhol Lal Dank: First National Bank Liabilities Assets Reserves and cash items $5 million Checkable deposits $15 milion Securities Money market deposit Less than 1 year $5 million accounts $5 million 1 to 2 years $5 million Savings deposits $16 million Greater than 2 years $10 million CDs Residential mortgages Variable-rate $10 million Variable-rate $10 million Less than 1 year $15 million Fixed-rate (30-year $10 million $5 million to 2 years Commercial loans $5 million Greater than 2 years Less than 1 year $5 million $15 million Fed funds 1 to 2 years $10 million Borrowings $10 million Greater than 2 years $25 million Less than 1 year $5 million Physical capital $5 million 1 to 2 years $5 million Greater than 2 years 85 million Bank capital $100 million $100 million Total Total dp