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Please include steps and explanations 5. Two companies have access to the following deposit offers in the Company A - 6 at a fixed rate
Please include steps and explanations
5. Two companies have access to the following deposit offers in the Company A - \6 at a fixed rate and \\( L \\) BOP \=0.1 at a floating rate; Compamy \\( B \\) - 5.496 at a fixed rate and LIBOR - 0.396 at a foating rate. The nominal amount of the contract is EUR 10 million. What is the nominal amount of money that Company \\( A \\) can gain if it decides to enter into a swap with Company \\( B \\) (without an intermediary) and Company \\( \\mathrm{B} \\) gains \0.15 of the nominal value of the swap? Also, at what interest rate must Company A place the deposit on the market (floating or fixed)? a) 25000 EUR and Company A places the deposit on the market at lloating interest rate. b) 25000 EUR and Company \\( A \\) places the deposit on the market at fixed interest rate. c) 40000 EUR and Company A places the deposit on the market at floating interest rate. d) 40000 EUR and Company A places the deposit on the market at fixedStep by Step Solution
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