EMHIR is a European MNC that has not accessed the European debt market because of concern about the potential appreciation of the EUR against the currencies of their primary customers. EMHIR prefers to borrow floating rate dollar debt, which they can currently access directly at LIBOR +0.5%. In contrast, CTF has a strong preference for fixed rate EUR debt. However, because CTF is unknown in the European market it must pay a 1.75% premium above the 4.75% coupon that EMHIR's EUR-denominated notes would carry. CTF, can currently obtain floating Eurodollar funding at a rate of LIBOR + 1.25%. What rates will the two counterparties pay after the swap if the cost savings are split equally? Oa. EMHIR will pay LIBOR and CTF will pay 6.00%. Ob. O C. EMHIR will pay LIBOR - 1.25% and CTF will pay 5.25%. EMHIR will pay LIBOR - 1.25% and CTF will pay 6.00%. EMHIR will pay LIBOR and CTF will pay 5.25%. O d. O e. None of the options in this question.

EMHIR is a European MNC that has not accessed the European debt market beceuse of concem about the potential oppreciation of the EuR against the currencies of their primary customers. EMHaR prefers to borrow floating rate dollar debt, which they can currently access directly at LiBOR + 0.5% in contrast, crF has a strong preference for fixed rate EUR debt. However, becouse CTF is unknown in the European market it must pay a 1.75%5 premium above the 4.754 coupon that EMHiR's EUR-denominated notes would carry CTE, cen currently obtain lloating Eurodollar funding at a rate of LieOA+ 1.25%. What rates will the two counterparties pay after the swap if the cost savings dre split equally? a EMHIR will pay LBOR and OTF will poy 6.00k. b. DMHiR mil pay L. TGOR- 1,25\% and CTF wil poy 5.25% c. EMRIR WIll pay UBO - 1.25 and CTF wilt pay 6.00w d. EMHIR Will pay LBOR and oll wul pay 5.25% e. None of the options in this