Companies a and b have been offered the following rates per annum on a $100 million 5 year loan
Fixed rate floating rate
Company A 4.0% libor+0.2%
Company B 5.2% libor + 0.8 %
Company A requires a floating rate loan; company b requires a fixed rate loan. design a swap that will appear equally attractive to both companies
hint: figure out a range for the swap rate.