(Interest rate swap. 3 of 4) Company A wants to finance a $100,000,000 project at a fixed rate for 5 years. Company B wants to finance a $100,000,000 project at a floating rate for 5 years. Their external borrowing opportunities are given below. Assume a swap bank is quoting five-year dollar interest rate swaps at 8.8. 9.0 percent against LIBOR flat. What is the value of this swap to Company B? Credit Rating Fixed-Rate Borrowing Cost Floating Rate Borr Company A A 10.3% LIBOR+1% 8.9% LIBOR+0.5% Company B AA Company B will only break even on the deal. Company B will save 40 basis points per year on $100,000,000 - $400,000 per year. Company will lose money on the deal. Company B will save 60 basis points per year on $100,000,000 - $600,000 per year. Company B will save 6 basis points per year on $100,000,000 - $60,000 per year