Company A can borrow at a fixed rate of 9.5% and variable rate of Prime plus 1%.Company A prefers a fixed rate.Company B can borrow at 8% fixed rate and Prime plus 2%.Company B prefers a variable rate.Determine whether an interest rate swap will be beneficial to both parties..

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The Answer of Company A can borrow at a fixed rate of 9.5% and variable rate of Prime plus 1%.Company A prefers a fixed rate.Company B can borrow at 8% fixed rate and Prime plus 2%.Company B prefers a variable rate.Determine whether an interest rate swap will be beneficial to both parties..

Company a Can Borrow at a Fixed Rate of 9