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Business, 19.12.2019 20:31 Larinadiaz5554

Consider a plain vanilla interest rate swap. firm a can borrow at 8 percent fixed or can borrow floating at libor. firm b is somewhat less creditworthy and can borrow at 10 percent fixed or can borrow floating at libor + 1 percent. both corporations wish to borrow $10 million for 5 years. which of the following swaps is mutually beneficial to each party and meets their financing needs?

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