Design a swap that will net a bank

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Companies X and Y have been offered the following rates per annum on a $50 million 5-year loan: Company X requires a floating-rate loan; company Y requires a fixed-rate loan. Design a swap that will net a bank, acting as an intermediary, 0.100% per annum, and will be equally attractive to X and Y. Draw a graph similar to our examples in week 3 to show your answer.

Reference no: EM133023536

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