Use the following table to answer this question: Fixed Floating LIBOR+.5 Firm AAA 10%% LIBOR+3 Firm BBB 11%% Spread Assume firm AAA wants a fixed rate loan and BBB wants a floating rate loan. Design a swap that is equally attractive to both firms. Draw the swap diagram and show all the cash flows like we did in class.

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A:

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A:

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