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Consider two ABC Co. and XYZ Co. who can borrow for a five-year term at following rates: ABC Credit rating Fixed rate Floating rate XYZ
Consider two ABC Co. and XYZ Co. who can borrow for a five-year term at following rates: ABC Credit rating Fixed rate Floating rate XYZ Bb 12% LIBOR+1% 10.50% LIBOR Assume ABC desires floating-rate debt and XYZ desires fixed-rate debt. No swap bank is involved in this transaction. Develop an interest rate swap and mention the effective rate for ABC and XYZ such that the savings for each of the company is equal. Just write the final answer ; XYZ = ;How much ABC and XYZ saves... ABC=
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