Swaps

swap? Round your answers to two decimal places. Use a minus sign to enter negative values, if any.

Net payment of Carter:

$\%$

Net payment of Brence:$-($LIBOR $+$

$\%)$

Would Carter be better off if it issued fixed$-$rate debt or if it issued floating$-$rate debt and engaged in the swap?

The swap is good for Carter, if it issued

$.$

Would Brence be better off if it issued floating$-$rate debt or if it issued fixed$-$rate debt and engaged in the swap?

The swap is good for Brence, if it issued fixed$-$rate debt and engaged in the swap $vv.$