Counterparty K borrows from the physical market at LIBOR + 1.5% and  Counterparty P borrows from the physical market at a fixed rate of 4.3%. In the swap, Counterparty K pays 4.5% and Counterparty P pays LIBOR + 0.5%. The net cost to Counterparty K is:

Select one:

a. 5.5%

b. 6%

c. LIBOR + 1.5%

d. 1.5%

e. LIBOR + 6%