Question
In a fixed rate loan market, A can borrow at 4% and B at 5.4%. In a floating rate loan market, A can borrow at
In a fixed rate loan market, A can borrow at 4% and B at 5.4%. In a floating rate loan market, A can borrow at Libor-0.1%, B at Libor+0.7%. A prefers floating rate loan and B prefers fixed rate loan. If floating rate of IRS is Libor, what is the fixed IRS rate which ensures an even split of the cost savings between the two companies through the IRS?
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Government Auditing Standards 2011 Revision
Authors: U. S. Government Accountability Office, Comptroller General Of The United States
1st Edition
1482311372, 978-1482311372
