Company A, a lower-rated firm, has access to floating-rate funds at a margin of 1.2% over LIBOR and fixed-rate funds at 10%. In contrast, company B, a higher-rated firm, has access to fixed-rate funds at 8%. Both companies enter into an interest rate swap with Bank C. Based on the swap, Bank C would gain 0.3% and each of the two companies would gain 0.6%. What is the current floating rate available for Company B?

Select one:

a. LIBOR+1.4%

b. LIBOR+.7%

c. LIBOR+1.1%

d. LIBOR+.3%