Company xYx has entered into an interest rate swap with Bank ABC with the following...

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Finance

Company xYx has entered into an interest rate swap with Bank ABC with the following terms:
Co XYZ receives SOFR +0.30%, pays 4.75%
Notional principal: $125 million
Payment terms: semi-annual
Term: 3 years
a. Calculate the cash flows, including net amount, over the life of the swap. (10 marks)
b. Compare and contrast a fixed-floating interest rate swap with a fixed-floating currency swap.
(5 marks)
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