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Company a and Company b have been offered the following rates fixed rate floating rate company a 2% 6 month LIBOR minus 20 bp company

Company a and Company b have been offered the following rates

fixed rate floating rate
company a 2% 6 month LIBOR minus 20 bp
company b 3% 6 month LIBOR plus 40 bp

Suppose that Company a borrows fixed and company b borrows floating. If they enter into a swap with each other where the apparent benefits are shared equally, what is company as effective borrowing rate?

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