If X and Y enter a Currency Swap with a bank, what will the values for A% and B% equal (so that X and Y can pay their outside lender)?

12) The exchange rate is $1.40 = 1. An outside lender provides Company X and Company Y with the following borrowing rates. $ Borrowing Borrowing Cost Cost Company x $ 10% 10.5% Company Y $ 12% 13% If X and Y enter a Currency Swap with a bank, what will the values for A% and B% equal (so that X and Y can pay their outside lender)? SWAP BANK 12) - A) B) C) D) A = $10.50%; B = 12%. A = $10%; B = 13%. A=$12%; B = 13%. A = 10.50%; B = $12%