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Exercise no V: We have two commercial entities named A and B. Both want to take external debt from the capital market (let's assume in
Exercise no V: We have two commercial entities named A and B. Both want to take external debt from the capital market (let's assume in the form of bonds or loan/ credit) in the value of 50 million USD each. Both they have been offered the various interest rates for the fixed rate instruments and variable rate instruments. Please analyze the possibility to enter of both of them into the swap agreement in which there will and investment bank as intermediary which requires 0,1% renumeration out of the transaction. The profits of both counterparties divide equally. Show the structure of the swap agreement (what loans they will be granted and they are going to swap each other the payments)
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