Suppose two companies Adams and Bridged Limited face the following financial contingencies: Demonstrate how the two companies Adams and Bridged Limited would undertake an interest rate swap and both...

Suppose two companies Adams and Bridged Limited face the following financial contingencies:

Demonstrate how the two companies Adams and Bridged Limited would undertake an interest rate swap and both benefit together assuming the case for disintermediation or intermediation in arranging the swap. Assume that the companies undertake the interest rate swap such that company A borrows initially from the fixed rate market at 12% and company B borrows from the floating rate market at LIBOR+0.80 and the two then share the gross cost savings in the ratio 55% and 45% respectively.