Question 3. Swap Comparative Advantage for Currency Swaps (10%) XXX wants to borrow USD YYY & Co wants to borrow EURO EURO USD XXX YYY 3.25% 4,75% 6.75% 5.50% Design a swap that will net a bank acting as intermediary 0.1% (10 basis points) per annum. Make the swap equally attractive to the two companies and ensure that all foreign exchange rate is assumed by the bank. Question 3. Swap Comparative Advantage for Currency Swaps (10%) XXX wants to borrow USD YYY & Co wants to borrow EURO EURO USD XXX YYY 3.25% 4,75% 6.75% 5.50% Design a swap that will net a bank acting as intermediary 0.1% (10 basis points) per annum. Make the swap equally attractive to the two companies and ensure that all foreign exchange rate is assumed by the bank