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BPP Exam Kit Q37, a) (Buryecs)

SDSimran Dassani11mo ago
Hi Sir, I understood the initial calculations of gain on swap after bank. But I am not able to understand how the swaps are working. I did not understand why are we only subtracting bank rate for counterparty and 4.6% for Buryecs. Subsequently did not understand how net result was achieved. Thank you for your help!
John MoffatJohn MoffatTutor11mo ago#1
There are several ways that the swap could be arranged in order to make the gain. The answer given is just one of the ways.
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