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Q.No: 2. Company A and B are offered the following interest rates on a loan of Rs.5 million by their banks. You are required to construct an interest rate swap for these firms netting 0.5% to the bank acting as intermediary and be equally attractive to A and B Company Fixed Rate Floating RateA 15% MIBOR +2%B 18% MIBOR +2.5%

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Q: Company A and B are offered the following interest rates on a loan of Rs5 million by their banks You are required to construct an interest rate swap for these firms netting 0.5 percent?
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