Imagine that the table above outlines deposits rates. Assuming A wants a fixed rate deposit and B wants a floating rate deposit, design the swap that would split the net gain in proportion 3:1 between A and B (A=3 : B=1).

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
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Chapter10: Valuing Early-stage Ventures
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Imagine that the table above outlines deposits rates. Assuming A wants a fixed rate deposit and B wants a floating rate deposit, design the swap that would split the net gain in proportion 3:1 between A and B (A=3 : B=1).

Company A
Company B
Fixed
4.0%
3.5%
Floating
Libor +2.2%
Libor +0.9%
Transcribed Image Text:Company A Company B Fixed 4.0% 3.5% Floating Libor +2.2% Libor +0.9%
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