thank you professor
please show how to work out the fixed rate of 7.75% that B pays A and the floating rate of (Libor+2.5%) that A pays B as they enter in the swap
sir, can you please explain where does floating cash flow comes from?
Dear Sir, could you explain the break up of 7.75% that B would pay to A as a simple equation ?
In your comparative example is it what happen when cies does shadow banking ?
could you please show how to work out the fixed rate of 7.75% that B pays A and the floating rate of (Libor+2.5%) that A pays B as they enter in the swap to get that even gain of 0.25%? Thanh you!
Thank you my professor did not do a good job teaching this.
@jacklingomes9137