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. CURRENT MARKET RATES: FIXED FLOATING Merrill Lynch COMPANY 5.75% 4.00% LIBOR + 2.00% LIBOR + 1.25% Debt Market Debt Market 12 pts) 27. Which company has a comparative advantage when borrowing directly in the market for fixed- rate debt, X or Y