Q2. Company X wishes to borrow US dollars at a fixed rate of interest. Company Y wishes to borrow Japanese Yen at a fixed rate of interest. The amount required by the two companies is the same at current exchange rate. The companies are subject to the following interest rates: Yen Dollars 9.6% Company X 5.00% Company Y 6.5% 10% Design a swap that will net a bank, acting as intermediary, 50 basis points per annum and will appear equally attractive to X and Y 26