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Company X wants to borrow$10,000,000floating for5years;company Y wants to borrow$10,000,000fixed for5years.Their external borrowing opportunities are as follows.Company X can borrow at10%fixed or LIBOR floating.Company Y
Company X wants to borrow$10,000,000floating for5years;company Y wants to borrow$10,000,000fixed for5years.Their external borrowing opportunities are as follows.Company X can borrow at10%fixed or LIBOR floating.Company Y can borrow12%fixed or LIBOR+1.5%floating.A swap bank quotes the following rates against the LIBOR:10.2%10.3%..The all in cost to firm X is ________%and the all in cost of firmY is ____________%.
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