Question
kkR can borrow at a floating rate LIBOR 3.186% or at a fixed rate of 10.01% but prefers to take a floating rate loan Rox
kkR can borrow at a floating rate LIBOR 3.186% or at a fixed rate of 10.01% but prefers to take a floating rate loan Rox can borrow at a floating rate LIBOR 1.365% or at a fixed rate of 9.1% but prefers to take a fixed rate loan Suppose they enter swap agreement and decide to split the cost saving at a ratio of 80% (Rox) to 20% (kkR)
At what rate can Rox borrow the fixed rate fund?
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Financial Institutions Management A Risk Management Approach
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