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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Buryecs Co – Mar/Jun 17
Dear John,
Regarding the swap part of this question bi), I’m a little confused about where they have mentioned in the question that Buryecs Co actually wants a floating rate and the Counterparty actually wants a fixed rate.
Thank you!
The question does not specifically say whether they wish to end up paying fixed or floating (questions usually make it more obvious). However swaps only give a saving one way round, and if you were to swap the other way then there would be no saving to be made.
Thank you!
You are welcome 🙂