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What would the cashflow diagram between each company look like? 1. Companics A and B have been offered the following rates per annum on a

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What would the cashflow diagram between each company look like?

1. Companics A and B have been offered the following rates per annum on a S20 million five-year loan: Company A Company B Fixed rate 5.0%) 6.4% Floating rate LIBOR t 0.1% LIBOR + 0.6% Company A requires a floating-rate loan; company B requires a fixed-rate loan. Design a swap that will net a bank, acting as intermediary, 0.1% per annum and that will appear qualy atractive to both companics

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