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Company X and Y offer below rates Company X Fixed Rate: 2.00% Floating rate: 3-month LIBOR + 10bp Company Y Fixed Rate: 3.00 % Floating

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Company X and Y offer below rates Company X Fixed Rate: 2.00% Floating rate: 3-month LIBOR + 10bp Company Y Fixed Rate: 3.00 % Floating rate: 3-month LIBOR + 20bp Assume Company X borrows at fixed rate and Y borrows at floating rate a) Y has negotiating advantage, what's the max benefit that it can derive? Assume borrowing 200mn dollars first

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