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Question 5 1 pts The table below presents the costs of borrowing for FaceBook and Caterpillar in Euros and Yens, and the quotes for interest

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Question 5 1 pts The table below presents the costs of borrowing for FaceBook and Caterpillar in Euros and Yens, and the quotes for interest swaps in Euros and Yens, both quoted againstLIBOR. FaceBook would like to get a fixed rate Yen loan. Caterpillar would like to get a fixed rate Euro loan. How much can FaceBook save by entering a currency swap agreement? Borrowing Cost in Euro Borrowing Cost in Yen FaceBook 2.00% 10.90% Caterpillar 2.75% 10.00% JPY Swap Bank Quote EUR Bid Ask 2.00% 2.10% Bid Ask 10.00% 10.09% None of the alternatives 75 bps V81 bps +90 bps 65 bps 19

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