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Question 9 1 ots The table below presents the costs of borrowing for Verizon and Caterpillar, and the Swap Bank quote against LIBOR. Verion would

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Question 9 1 ots The table below presents the costs of borrowing for Verizon and Caterpillar, and the Swap Bank quote against LIBOR. Verion would be to get a $4,000,000.00 floating rate loan. Caterpillar would like to get a $4,000,000.00 foredrate loan. How much can the wao tankoht from entering into a swap agreement with Verizon and another with Caterpillar? Fixed-Rate Borrowing Cost Floating Rate Borrowing Cost Verizon 7.00 Libor Caterpillar 11.50 Libor+4.40 Swap Bank Quote Bid Ask 7.05% 7.08%

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