Question: Question 3 3 pts Company A has a fixed borrowing cost of 3 % and a float rate cost of LBOR. Company B has a

Question 3
3 pts
Company A has a fixed borrowing cost of 3% and a float rate cost of LBOR. Company B has a fixed-rate borrowing cost of 4% and a float rate cost of LIBOR 0.6%. Which of the following is true?
Company A has to want to borrow at float rate and company B has to want to borrow at float rate for swap to happen.
Company A has to want to borrow at fixed rate and company B has to want to borrow at float rate for swap to happen.
Company A has to want to borrow at fixed rate and company B has to want to borrow at foxed rate for swap to happen.
Company A has to want to borrow at float rate and company B has to want to borrow at foxed rate for swap to happen.
Question 3 3 pts Company A has a fixed borrowing

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