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Alpha and Beta Companies can borrow for a five-year term at the following rates: Alpha Beta Moody's credit rating Baa Fixed-rate borrowing cost 9.7% 12.6%
Alpha and Beta Companies can borrow for a five-year term at the following rates: Alpha Beta Moody's credit rating Baa Fixed-rate borrowing cost 9.7% 12.6% Floating-rate borrowing cost LIBOR LIBOR + 1.1% If there is a swap bank involved and earns 20% of the swap's total benefit. Alpha wants to borrow through floating debts and desires 70% of the total benefit from the swap, and Beta takes the rest of the swap benefit. What is the all-in-cost for Beta through the swap? (if your answer is 10.1%, just enter "10.1")
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