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1. Suppose Google would like to borrow fixed-rate yen and can borrow them at 4.00% or floating-rate dollars at LIBOR + 0.10%. The Panasonic Corporation
1. Suppose Google would like to borrow fixed-rate yen and can borrow them at 4.00% or floating-rate dollars at LIBOR + 0.10%. The Panasonic Corporation would like to borrow floating-rate dollars and can borrow fixed-rate yen at 4.5% or floating-rate dollars at LIBOR + 0.80%. What is the range of possible cost savings that Google can realize through an interest rate/currency swap with Panasonic?
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