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? O a. EMHIR will pay LIBOR and CTF will pay 6.00%. O b. O c. O d. Oe. 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%. None of the options in this question.

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 curfencies of their primary customers. EMHIR prefers to bocrow floating rate dollar debt, which they can currently access directly at LIBOR 0.5% in contrast, CTF has a strong preference for fored rote EUR debt. However, because OTF is unknown in the European market it must pay a 1.75% premium above the 475% coupon that EMHIR'. EUR denominated notes would carry. CTF, can currently obtain floating Eurodollar funding at a rate of LBOR + 1.25% What rates will the fwo counterparties pay after the swap if the cost savings are split equally? a. EMHIR wilipay LIBOR and CTF will pay 600% b. EMHIR will pay LIBOR 1.25% and CTF will pay 5.25s c. EMHIR will Pay LIBOR 1.25% and CTF will p0y 6.00m d EMAIR will pay LIBOR and CTF will pay 5.25k e. None of the options in thit