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Business, 19.03.2021 06:40 honeyaranda326pay2bl

Company A can borrow fixed at 14.8 percent and floating at LIBOR percent. Company B can borrow fixed at 16.2 percent and floating at LIBOR 0.35 percent. A financial intermediary charges a fee of 0.14 percent. Company A wishes to borrow floating and company B wishes to borrow fixed. Assume the gain is evenly split between the two parties and floating rate legs are LIBOR. Design the swap. What is the company A's fixed rate leg and company B's fixed rate leg, respectively.

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Company A can borrow fixed at 14.8 percent and floating at LIBOR percent. Company B can borrow fixed...
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