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Company X and Y both need to borrow $10,000,000 for 5 years. Their borrowing costs are summarized in the following table. Fixed-rate borrowing Floating-rate

    

Company X and Y both need to borrow $10,000,000 for 5 years. Their borrowing costs are summarized in the following table. Fixed-rate borrowing Floating-rate borrowing X 10% LBOR Y 12% LIBOR 1.5% bank quotes the five-year dollar interest rate swaps at 10.05% -10.45% against LIBOR flat. Assume X and Y agree to the swap bank's terms. Fill in the values for A, B, C, D, E, & F on the diagram. H SWAP C X Y BANK F D A is Fis " C is Bis and E is and D is "

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