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Comparyy X warits to borrow $10,000,000 floating for 5 Years, Compahy Y wants to borrow $10,000,000 fived for 5 years. Thelr externai borrowing opportaribles are

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Comparyy X warits to borrow $10,000,000 floating for 5 Years, Compahy Y wants to borrow $10,000,000 fived for 5 years. Thelr externai borrowing opportaribles are shiown below: A swap bank proposes the following interest only swap: X will pay the swap bank annual payments on $10,000,000 wath the coupon rate of UBOR; in evehange the swae bank will pay to company X interest payments on $10,000,000 at a fored rate of 4.25%. Y will pay the swop bank interest payments on $10,000,000 at a fixed rate of 5% and the swap bank will pay Y annuaf peyments on $10,000,000 with the coupon rate of UBOR+,5%. What is the value of this swap to Company X in basis points

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