Chapter 18 Interest Rate Risk

Interest rate swap. Cat plc and Dog plc, both want to borrow £150m for eight years. Cat would like to borrow on a fixed-rate basis. Dog prefers to borrow at floating rates Fixed. Floating. Cat can borrow at. 10%. LIBOR +2%. Dog can borrow at. 8%. LIBOR +1%. Dog has an absolute advantage in both ................
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