ABC Learning Centre Australian Company (A) needs to borrow RMB487 million (S100 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(S) 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 S100 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