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3.) (10 points) Suppose Company XYZ (a US Company) would like to borrow fixed-rate Yen, whereas Commonwealth Bank (CB) would like to borrow floating-rate US

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3.) (10 points) Suppose Company XYZ (a US Company) would like to borrow fixed-rate Yen, whereas Commonwealth Bank (CB) would like to borrow floating-rate US dollars. XYZ can borrow fixed-rate Yen at 6.0% or floating-rate US dollars at LIBOR +.25%. CB can borrow fixed-rate Yen at 6.3% or floating-rate US dollars at LIBOR +.8%. A.) What is the range of possible cost savings that XYZ can realize through an interest rate/currency swap with CB? PLEASE BE SURE TO INCLUDE THE RANGE OF SAVINGS. FULL CREDIT WILL NOT BE GIVEN IF THE RANGE IS NOT INCLUDED. B.) If CB passed on . 30% of the savings to XYZ how much savings would XYZ and CB enjoy through the swap

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