What is gain to each party to the swap

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Reference no: EM131977808

Company A can borrow fixed at 13.3 percent and floating at LIBOR+ 0.6 percent. Company B can borrow fixed at 12.1 percent and floating at LIBOR+ 0 percent. If a financial intermediary charges a fee of 0.12 percent, what is the gain to each party to the swap? Assume the gain is evenly split between the two parties.

Reference no: EM131977808

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