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ASO can borrow money at either a fixed rate of 7 . 5 % or a variable rate set at prime plus 0 . 5

ASO can borrow money at either a fixed rate of 7.5% or a variable rate set at prime plus 0.5% DOT can borrow money at either a variable rate of prime plus 1% or a fixed rate of 7.25% ASO prefers a fixed rate and DOT prefers a variable rate. Given this information, which one of the folstatements is correct? A. after Swap with ASO, DOT should end up Paying fixed rate of about 7.125%
B. DOT should end up being the prime rate if they do an interest rate swap with ASO
option C - both forms will profit if they swap a 7.35% fixed rate for a prime plus 0.75% variable rate
option D- ASO will end up paying no more than 7% as a fixed rate after a swap with DOT
option E- ASO and DOT cannot swap interest rates in a manner that will be profitable for both firms
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