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Exercise 1 Companies A and B have been offered the following rates per annum on a $ 2 0 million 5 - year loan:Company A

Exercise 1Companies A and B have been offered the following rates per annum on a $20 million 5-year loan:Company A requires a floating-rate loan; company B requires a fixed-rate loan. Design a swap that will net a bank, acting as intermediary, 0.1% per annum and that will appear equally attractive to both companies.

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