Company A wants fix borrowing.

Company B wants floating borrowing.

A can borrow fix at 2% and floating at CDOR + 1/2%

B can borrow fix at 1.85% and floating at CDOR + 1/4%

If the profit/loss of the swap is shared half/half between A and B what is the final outcome?

Select one:

 

a. "B" final borrowing rate will be CDOR + 35 basis points  

b. "B" final borrowing rate will be CDOR + 20 basis points   

c. "A" final borrowing rate will be 3.05%  

d. "A" final borrowing rate will be 2.95%