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Find costs associated with the transaction

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XVA Adjustments can be made to derivative trades. What the costs associated with the following transaction and

If these costs were assessed and included in the price the counterparty paid do you think they are pure profit? Why? 

  • Face Value of A$150m  
  • Term 10 years, no amortisation  
  • Client Pays Fixed Rate at market, receives BBSW
  • Corporate counterparty, uncollateralised.  
  • No other deals with the counterparty
  • Product AUD Interest Rate Swap

Reference no: EM133076168

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