Question 4 5 pts Companies A and B have been offered the following rates per annum on a $20 million 5-year loan, and a bank, acting as intermediary, will charge 0.20% per annum (20 basis points) to arrange and manage the swap, which appears equally attractive to A and B. Fixed Rate Floating Rate Company A 5.5% LIBOR + 0.20% Company B 6.5% LIBOR +0.40% Company A requires a floating-rate loan, and company B requires a fixed-rate loan. What is the net rate the company B will pay after the swap is arranged? (please enter your answers as percentages, for instance answer 9.0 to indicate 9.0%). |