swap between companies and bank the question:

my answer:

please check my answer, i am not sure whether iam right ,Thank you very much!

than fixed / floating A 6% LIBOR+1% 9.5% LIBOR +1.5% t A credit rating is good B, A believes in terest rate will fall and A would borrow at a floating rate B prefer fixed rate toan. Bank suggested they should engage in sway. The banks's commission would be 1% (after allowing for bank's commission, the swap benifits should be shared equally between 2 companies) draw a a swas diagram Here is my answer, please check whether it's right, thx! 6% LIBORU!% 95% LIBOR 11.5% le B LIBOR + 2,5% TA Bank 13 - 7% difference: (Benifit of swap 3.5 -0.5% +3% bank comuna ssjon = 1% remaining benefit = 3% -1% = 2% on each side 22 =12 2