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firm a can borroe at 5% fixed or at libor plus .5% in the fixed and floating rate markets respectively. firm b can borrow at
firm a can borroe at 5% fixed or at libor plus .5% in the fixed and floating rate markets respectively. firm b can borrow at 8% fixed or libor plus 1.5% in the fixed and floating rate markets respectively. A wants floating and b wants to borrow fixed. if a borrows fixed and b borrows floating and they enter into a fixed for labor interest rate swap in which a pay libor flat what swap rate would you suggest to the two firms if you were an unbiased advisor
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