BBC (Australia). Botany Bay Corporation (BBC) of Australia seeks to borrow in the eurodollar market. Funding is needed for two years. Investigation leads to three possibilities. Compare the alternatives and make a recommendation. US$30,000,000 1. Botany Bay could borrow the US$30,000,000 for two years at a fixed 5% rate of interest. 2. Botany Bay could borrow the at LIBOR . LIBOR is currently , and the rate would be reset every six months. US$30,000,000 + 1.500% 3.500% 3. Botany Bay could borrow the for one year only at . At the end of the first year, Botany Bay would have to negotiate for a new one-year loan. US$30,000,000 4.500%