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Company SAS has obtained SAR 100,000,000 loan at the price of SIBOR+3.00% for 5years. The company's management is concerned about a potential increase in the

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Company SAS has obtained SAR 100,000,000 loan at the price of SIBOR+3.00% for 5years. The company's management is concerned about a potential increase in the interest rate. Hence, it has been decided to consider using suitable OTC derivative instruments to hedge against the interest rate risk. The current market levels are as follows: 3-Year Interest Ratswap: 2.5% 5-Year Interest Rate Swap:3.0% 3-Year Interest rate Cap Strike: 2.5% (Premium - SAR 500,000) 5-Year Interest rate Cap Strike: 3.0% (Premium - SAR 750,000) Considering the above, answer the following questions: A. What shall the company do if it decides to completely fix the interest cost regardless of the future interest rate paths and movements? Please indicate the overall All in interest cost in Do the Answer Here your

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