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Question 10 Not yet answered Marked out of 1.00 P Flag question K-Roo Ltd. and Ala Co. both want to borrow USD 152 million. Ala

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Question 10 Not yet answered Marked out of 1.00 P Flag question K-Roo Ltd. and Ala Co. both want to borrow USD 152 million. Ala Co. can borrow fixed-rate JPY at a rate of 4.77%, or it can borrow floating-rate USD at LIBOR + 0.83%. K-Roo Ltd. can borrow fixed-rate JPY at a rate of 4.6%, or it can borrow floating-rate USD at LIBOR +0.06%. If K-Roo Ltd. would like to borrow fixed-rate JPY and Ala Co. would like to borrow floating-rate USD, what are the possible cost savings to K-Roo in JPY terms from a swap agreement between the two firms? Assume all cost savings accrue to K-Roo Ltd. The current exchange rate is JPY62/USD. O a. 56.5440 million O b. 0.0147 million O c. 72.5648 million d. 16.0208 million e. There are no cost savings to K-Roo Ltd. from a swap

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