Alpha and Beta Companies can borrow for a five-year term at the following rates:

Alpha Beta

Moodys credit rating Aa Baa

Fixed-rate borrowing cost 10% 12.6%

Floating-rate borrowing cost LIBOR LIBOR + 1%

If there is no swap bank involved, and Alpha wants to borrow through floating debts and desires 70% of the total benefit from the swap. How much could Alpha save from the swap? In other words, the all-in-cost for Alpha is LIBOR - B% through the swap, and B is worth 70% of the swap's total benefit (For example, if the total benefit of the swap is 2%, then B = 0.7 x 2%=1.4% , you enter your answer as "1.4").