Assume the following borrowing rates ,respectively,for Kanga Bicycles and Roo Bikes : Suppose Kanga issues floating- rate debt and Roo issues fixed- rate debt,after which they engage in the following swap:
Kanga will make a fixed 8.95% payment to Roo,and Roo will make a floating- rate payment equal to BBSW to A.What are the resulting net payments of Kanga and Roo?

Question

Assume the following borrowing rates ,respectively,for Kanga Bicycles and Roo Bikes :  Suppose Kanga issues floating- rate debt and Roo issues fixed- rate debt,after which they engage in the following swap:
Kanga will make a fixed 8.95% payment to Roo,and Roo will make a floating- rate payment equal to BBSW to A.What are the resulting net payments of Kanga and Roo?

Quizplus · Accepted Answer

The Answer of Assume the following borrowing rates ,respectively,for Kanga Bicycles and Roo Bikes :  Suppose Kanga issues floating- rate debt and Roo issues fixed- rate debt,after which they engage in the following swap:
Kanga will make a fixed 8.95% payment to Roo,and Roo will make a floating- rate payment equal to BBSW to A.What are the resulting net payments of Kanga and Roo?

Assume the Following Borrowing Rates ,Respectively,for Kanga Bicycles and Roo