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finance questions it is clear you do one thing pass that question to finance guy it was added by mistake by to advanced math Company

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finance questions

it is clear you do one thing pass that question to finance guy it was added by mistake by to advanced math

Company A and B can borrow at the following fixed and floating rates per annum Company Fixed rate 75 8.8% Foating rate MIBOR +50 bps MIBOR - 150 bps B At present Company A has an outstanding loan at fixed rate, and it intends to swap its liability from fixed to floating rate. Similarly, Company B has an outstanding loan in floating rate, and it wants to swap its ability from floating to fixed rate. Both of them approached & swap dealer separately. Design a swap deal that will be equally attractive to Company A and Company B and provide swap dealer 20 basis points. Show the swap deal in a diagram and calculate net interest costs to both the companies 3.69 Mars)

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