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risk management ompany A con borrow fix ot 4. floating at h+2 Company B can borrow for at 3% floating at L Company floating A
risk management
ompany A con borrow fix ot 4. floating at h+2 Company B can borrow for at 3% floating at L Company floating A want to borrow 100m Comp B want to borrow $100m fix which com company adu has an absolute which company has a relative adu. Creat a swap between the two com! company that reduce the cost of borrowing on both com company if : 2.si 1. What would be the cast of borrowing for both company before the swap 2, what would be the cost of borrowing after swap? How much did both company manage 3. to save Step by Step Solution
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