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Consider the borrowing costs faced by the following three companies: Assume if entering the swap transaction, they split the possible savings equally. A) Company A

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Consider the borrowing costs faced by the following three companies: Assume if entering the swap transaction, they split the possible savings equally. A) Company A and C want to engage in the swap transaction. What is the possible combined savings for both companies? B) Suppose company A wants to borrow fixed rate funds is it possible for A to reduce its cost of borrowing below 5%, and if so what is the lowest possible cost of could achieve? C) Suppose company A wants to borrow floating rate funds. Is it possible for A to reduce its cost of borrowing below LIBOR +0.6%, and if so what is the lowest possible cost it could achieve

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