The gain is split evenly between two parties

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Company A can borrow Yen 10.6% and dollars at 9.3%. Company B can borrow yen at 9.1% and dollars at 8.8%. If the financial intermediary charges a fee of .15% what is the gain to each party to the swap. The gain is split evenly between the two parties and the exchange rate risk is assumed by the intermediary.

Reference no: EM131300345

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