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In particular, how do we find the equilibrium swap rate? 4. Firm B wants to raise $10 million at a fixed rate. Firm A wants

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In particular, how do we find the equilibrium swap rate?

4. Firm B wants to raise $10 million at a fixed rate. Firm A wants to raise $10 million at a floating rate. The firms have the following borrowing rates: Firm A Firm B Fixed Rate 10% 9% Libor + 1% Libor + 4% Floating Rate Is there any profitable deal an investment bank can offer to the two firms

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