Access to fixed rate and floating rate of euribor

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Reference no: EM131603525

Suppose firm ABC has access to fixed rate 7.5%, and floating rate of Euribor + 1.0%, while XYZ had access to fixed rate 6% and floating rate Euribor + 0.5%. For these two firms:

A swap would help if ABC wants fixed and XYZ wants the floating rate

A swap would help if ABC wants floating and XYZ wants the fixed rate

A swap would be useful in either case

A swap would never be useful under these

Reference no: EM131603525

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