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26. If a company with a fixed-rate debt of 11% enters into a swap and pays floating-rate debt of BBSW+1.20% and receives fixed-rate payments of

26. If a company with a fixed-rate debt of 11% enters into a swap and pays floating-rate debt of BBSW+1.20% and receives fixed-rate payments of 9%, its net cost of debt becomes: A. 11% B. BBSW+0.20% C. BBSW+2.20% D. 12%

why answer is b

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