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create a swap contract diagram on this points: What is the risk exposure of the bank? What would be the cash flow goals of each
create a swap contract diagram on this points:
- What is the risk exposure of the bank?
- What would be the cash flow goals of each company if they were to enter into a swap arrangement?
- Which FI would be the buyer and which FI would be the seller in the swap?
- Diagram the direction of the relevant cash flows for the swap arrangement.
- What are reasonable cash flow amounts, or relative interest rates, for each of the payment streams?
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