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The questions goes with Questions 7 which i have include in this comment section. Question have been answered, i just need question 8. Thank You.

Bank 1 can issue five-year CDs at an annual rate of 11 percent fixed or at a vari- able rate of LIBOR plus 2 percent. Bank 2 can issue five year CDs at an annual rate of 13 percent fixed or at a variable rate of LIBOR plus 3 percent.

a. Is a mutually beneficial swap possible between the two banks?

b. Where is the comparative advantage of the two banks?

c. What is an example of a feasible swap?

ee two banks vantage of the two banks? example of a feasible swap? 8. First Bank can issue one year, floating-rate CDs at prime plus 1 percent or fix rate CDs at 12.5 percent. Second Bank can issue one year floating rate CDs prime plus O.5 percent or fixed-rate CDs at 11.0 percent. a. What is a feasible swap with all the benefits going to First Bank? b. What is a feasible swap with all the benefits going to Second Bank C. Diagram each situation. d. What factors will determine the final swap arrangement? 9. Two multinational Fls enter theis