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Newman Industries is a AAA-rated company that needs to fund a project with an estimated life of 10 years. It can borrow at a fixed

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Newman Industries is a AAA-rated company that needs to fund a project with an estimated life of 10 years. It can borrow at a fixed rate of 10.50% or it can borrow at a floating rate of 6-month LIBOR. Costanza Industries is a BBB-rated company that also needs to borrow for 10 years. It can borrow at a fixed rate of 12.00% or it can borrow at a floating rate of 6-month LIBOR +.25%. The swap quote from the Del Boca Vista Bank is: 11.00% 11.25% vs. LIBOR. Show how much each company saves and how much is made by DBVB

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