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I would be very happy if you explain the processes and how they are done with the steps. thank you in advance Company A, a
I would be very happy if you explain the processes and how they are done with the steps. thank you in advance
- Company A, a Turkish manufacturer, wishes to borrow U.S. dollars at a fixed rate of interest. Company B, a US multinational, wishes to borrow Turkish lira at a fixed rate of interest. They have been quoted the following rates per annum (adjusted for differential tax effects):
| TRY | US Dollars |
Company A | 9.0% | 2.8% |
Company B | 8.6% | 0.2% |
Design a swap that the bank will receive , acting as intermediary, 0.2% per annum and that will produce a gain of equal basis points per annum for each of the two companies.
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