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Question 1: Swap (6 points) Companies A and B have been offered the following rates per annum on a $10 million five-year loan: Company A

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Question 1: Swap (6 points) Companies A and B have been offered the following rates per annum on a $10 million five-year loan: Company A requires a floating-rate loan. Company B requires a fixed-rate loan. Design a swap that will net a bank, acting as intermediary, 10 basis points per annum and appears to be equally attractive to both companies

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