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Design a Hypothetical Plan Vanilla Interest Rate Swap where there is a financial intermediary. Demonstrate how the swap has value to all parties (i.e., the

Design a Hypothetical Plan Vanilla Interest Rate Swap where there is a financial intermediary. Demonstrate how the swap has value to all parties (i.e., the fixed to floating, the floating to fixed and the financial intermediary). Determine the amount of benefit to each party in terms of annual interest rate savings, etc. Show the flow of funds at each interest payment date for all parties.

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