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OS flurk has s00 mit loans at floating rate c.5. as City Bank decide to borrow floating while GS seek to borrow fix. 1. Explain

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OS flurk has s00 mit loans at floating rate c.5. as City Bank decide to borrow floating while GS seek to borrow fix. 1. Explain why wodid Cly Bark might neod a foating rate. 2. Which bark has an absolite advartage ard which has a relative abvartage ?. 8. It both bank enter a swas, what would be the coet of borrwing for each bark? 4. Create a seap betieves the two banks 5. Draw a proper scheme i. Explain the process of this swap

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