Company Loubotin and Company Tods have been offered the following rates:

	Fixed Rate	Floating Rate
Company Loubotin	3.5%	3-month LIBOR plus 10bp
Company Tods	4.5%	3-month LIBOR plus 30 bp

Suppose that Company Tods invests fixed and Company Loubotin invests floating. If they enter into a swap with each other where the apparent benefits are: Company Tods shared 60% and the Company Loubotin shared 40%, what is Company Todss effective investment rate?

Group of answer choices

3-month LIBOR-38bp

3-month LIBOR-18 bp

3-month LIBOR+78bp

3-month LIBOR+48 bp