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[Problem 9 - 10] 1) Company XXX has been offered the rates shown in the following Table. It can invest for five years at 6.8%.

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[Problem 9 - 10] 1) Company XXX has been offered the rates shown in the following Table. It can invest for five years at 6.8%. What floating rate can it swap this fixed rate into? (4 points) LIBOR + or - Basis Points 2) Company YYY has been offered the rates shown in the following Table. It can invest for ten years at LIBOR plus 170 basis points. What fixed rate can it swap this floating rate into? (4 points) Bid and offer fixed rates in the swap market; Payments exchanged semiannually Maturity (Years) Bid Offer 6.74 6.94 7.44 7.88 10 [Problem 9 - 10] 1) Company XXX has been offered the rates shown in the following Table. It can invest for five years at 6.8%. What floating rate can it swap this fixed rate into? (4 points) LIBOR + or - Basis Points 2) Company YYY has been offered the rates shown in the following Table. It can invest for ten years at LIBOR plus 170 basis points. What fixed rate can it swap this floating rate into? (4 points) Bid and offer fixed rates in the swap market; Payments exchanged semiannually Maturity (Years) Bid Offer 6.74 6.94 7.44 7.88 10

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