BURYECS (MJ2017) – swap

Hi sir,

I’m doing the question for part b i which asking to calculate % save and demonstrate how swap work. I understand and got the answer for net % saved but for the “demonstrate how swap work ” I’m not sure whether my answer is correct. Hope sir can assist.

*answer in table form
B C
Borrow (4%) (BR+0.4%)
B to C (BR) BR
C to B 4.6% (4.6%)
Interest after swap (BR-0.6%) (5%)
Interest without swap (BR+0.6%) (5.8%)
savings 1.2% 0.8%
swap fee (0.3%) (0.2%)
net savings 0.9% 0.6%

it looks something wrong but i’m not sure where wrong