ABC Learning Centre Australian Company (A) needs to borrow RMB487 million ($100 million at the current exchange rate of RMB/$ = 4.87) for ten years to establish a childcare centre in China. Huawei - a Chinese telecommunications firm (C) needs to borrow $100 million for ten years to set up an Australian division. The two face the following borrowing costs (annual coupon payments): r($) r(RMB) A= ABC Learning 0.042 0.065 C= Huawei 0.039 0.052 Consider the following arrangement. A and C should borrow the full principal amount of either RMB487 million (or $100 million equivalent) based on their comparative advantage. Each company then agrees to pay the repayment obligation of the other. In addition A will pay C RMB29.22mil at the end of each year, and C will pay A $4.5 mil at the end of each year. Assume: Forward rates for the next ten years will be the same as the current spot rate of RMB/$=4.87. Question: With this swap arrangement, what are the interest rate (%) savings for C relative to the interest rate without this swap arrangement? Please write your answer in the box below to 4 decimal places (not percentage). For example, if the answer is 12.3456%, please type 0.1235