sembilan 6/12

hi

sir i watched your lectures again. now i m bit clear about swap. but in this question the fixed annual rate paid by company confused me.

company want to fix the rate. what we do is opposite. company will go for Y+60 and bank with fixed rate of 3.7625

then they swap

bank will pay yield

company will pay fix 3.7625…but how this amount?

now if we see comparative like if company pay fix and bank on yield total is Y+3.7625
and if company pay floating and bank pay fix then its y+4.4625

so first one give low rate and so comparative gain of .6

own

company y+.6-.3=y+0.3
bank 3.7626- .3=3.4625

total =y+4.4625

swap
company 3.7625
bank y

total =y+3.7625

or in this question its different..end result for company is 3.7625
and for bank its y

please help