【正文】
Interest Rate Swap Between Two Corporations ? Borrowing costs – Big Boy: ? Tbill+2% for debt with floating rate and 7% for debt with fixed rate ? Would like to borrow the money with floating rate – Little Guy: ? Tbill+% for debt with floating rate and 9% for debt with fixed rate ? Would like to borrow the money with fixed rate ? The borrowing costs of Big Boy are smaller than Little guy regardless of fixed or floating rate ? No need to SWAP? ? Comparative advantage versus Absolute advantage ? For Big Bo