Question Completion Status:

Company X has issued $$100$ million worth of long$-$term bonds at a fixed rate of $9\%.$ X then enters into an interest rate swap where they will pay LIBOR and receive a fixed $8\mathrm{.}00\%$ on a notional principal of $$100$ million. After all these transactions are considered, X$\text{'}$s cost of funds is

$17\%$

LIBOR

LIBOR $+1\%$

LIBOR $-1\%$