Q8

tine ats Given the following information, does a comparative advantage opportunity exist? Fixed Floating BBSW+1 Company A- prefers fixed 8 per cent per cent Company B - prefers floating 7 per cent BBSW O Yes - both parties can pay less interest by borrowing where they have a comparative advantage and swapping their interest payments Yes - the potential savings from entering a swap are 1 per cent O Yes -but a swap would reduce the cost of funds for B only O No O Cannot say with the available information