using fixed rate and float rate mortgage to solve the following:

Fix Rates:

Person A - 5%

Person B - 7%

Float rates:

For person A - LIBOR + 2.5%

for person B - LIBOR + 4.1%

Questions -

1. Design a swap for persons A and B without a Swap Bank.

2. Design a swap for persons A and B with a Swap Bank.