PDF Chapter 13 Currency and Interest Rate Swaps

year fixed rate Japanese yen funding. Company A's direct borrowing all-in-cost is 9.50% in dollars and 7% in Japanese yen. Company B's direct borrowing all-in-cost is 8.25% in dollars and 8% in Japanese yen. a. Refer to the quotes by a bank on the next page and design a swap between the two companies involving the bank. ................
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