Questions #27-29 are based on the following information: Merrill Lynch has two corporate customers, X and Y, each looking to borrow $100 million for three years and each indifferent between borrowing fixed or floating at current market rates. Based on the information in the table below, Merrill proposes two swap agreements, one with X and one with Y, that take advantage of their direct-market borrowing rates. Assuming ML collects a 0.20% fee and divides the remaining borrowing benefit equally between X and Y, answer the following questions, Assume that all interest rates and cash flows are annual. X CURRENT MARKET RATES: FIXED FLOATING Merrill Lynch Y COMPANY X 5.75% 4.00% LIBOR + 2.00% LIBOR + 1.25% Y Debt Market Debt Market 12 pts) 29. How much does Company X save in percent terms on an annual basis by borrowing in the market where it has a comparative advantage and engaging in a swap with Merrill? Remember to express your answer in decimal form