Question
NEED ASAP!!!!! Company A can borrow money at a fixed rate of 9% or a variable rate set at prime plus 1% Company B can
NEED ASAP!!!!!
Company A can borrow money at a fixed rate of 9% or a variable rate set at prime plus 1% Company B can borrow money at a variable rate of prime plus 2% or a fixed rate of 8.25% Company A prefers a fixed rate and company B prefers a variable rate. Given this information, which one of the following statements is correct?
Multiple Choice
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Company A can swap with B and pay a fixed rate of 8%
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There are no terms under which both Company A and Company B can swap interest rates and both realize a profit.
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If Company A swaps with B, Company A should end up paying a fixed rate between 8 % and 9%
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Company B can swap with Company A such that Company B receives a 9 % fixed rate.
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If Company B swaps with Company A then Company B will end up paying a fixed rate of 8%
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