Swap the interest to a floating rate for a three year period.

The bank has quoted a swap rate of 4.10% for LIBOR, with interest fixing dates on thewith interest fixing dates on the

Start date of each yearstart date of each year of the swap agreement.

Spray Co's fixed rate of interest is 4.40%.

LIBOR on the start date of year 2 of the three year swap agreement was 4.25%, but this had

Risen to 4.58% by the end of year 2 (12 months later).

What is the difference in Spray Co's overall net interest paid in the year (year 2 of the swap

Agreement) as a consequence of using the swap?

Which TWO of the following companies have dividend policies that most closely

Match Mrs Smith's requirements?