• Design a swap possibility between the two companies?
• Which company is a winner in this case ( based on rates given) ?
• What is the possible total savings for both companies?
• What is the range for the swap rate? (Cost for both companies)
• By how much will the SWAP make both companies better off?

3. Companies A and B have been offered the following rates per annum on a $100 million five-year loan: Company A requires a floating-rate loan; company B requires a fixed-rate loan. Design a swap that will appear equally attractive to both companies. Hint: figure out a range for the swap rate