contestada

5. Company A and Company B have been quoted the following rates: Company A fixed 5.40% or floating LIBOR + 120 basis points Company B fixed 4.75% or floating LIBOR + 35 basis points Design a swap that will produce a net gain of 10 basis points per annum for each of the two companies. Design a swap that will produce a net gain of 5 basis points per annum for Company A and a net gain of 15 basis points per annum for Company B. Design a swap that will produce a net gain of 8 basis points per annum for each of the two companies and a 4 basis point fee for an intermediary.