Refer to the following table. A swap deal, that lowers the cost of each company by 75 basis points, is possible if Rex Technologies BBB 8% Interest Rate Swaps Xanadu Oil Corporation Credit Rating AAA Fixed rate cost of borrowing 6% Floating rate cost of borrowing LIBOR +0.5% Xanadu borrows at 5% fixed; Rex borrows at LIBOR+1%. Then they enter into a swap deal where Xanadu receives payments at LIBOR and makes fixed rate payments at 5.25% LIBOR +1.0% Xanadu borrows at LIBOR+0.5% and Rex borrows at the fixed rate of 7% Xanadu borrows at 5% fixed; Rex borrows at LIBOR+1%. Then they enter into a swap deal where Xanadu makes payments at LIBOR and receives fixed rate payments at 5.25% Rex borrows at LIBOR+1% and Xanadu borrows at LIBOR+0.5% Xanadu borrows at 6% fixed; Rex borrows at LIBOR+1%. Then they enter into a swap deal where Xanadu makes payments at LIBOR and receives fixed rate payments at 6.25% Refer to the following table. A swap deal, that lowers the cost of each company by 75 basis points, is possible if Rex Technologies BBB 8% Interest Rate Swaps Xanadu Oil Corporation Credit Rating AAA Fixed rate cost of borrowing 6% Floating rate cost of borrowing LIBOR +0.5% Xanadu borrows at 5% fixed; Rex borrows at LIBOR+1%. Then they enter into a swap deal where Xanadu receives payments at LIBOR and makes fixed rate payments at 5.25% LIBOR +1.0% Xanadu borrows at LIBOR+0.5% and Rex borrows at the fixed rate of 7% Xanadu borrows at 5% fixed; Rex borrows at LIBOR+1%. Then they enter into a swap deal where Xanadu makes payments at LIBOR and receives fixed rate payments at 5.25% Rex borrows at LIBOR+1% and Xanadu borrows at LIBOR+0.5% Xanadu borrows at 6% fixed; Rex borrows at LIBOR+1%. Then they enter into a swap deal where Xanadu makes payments at LIBOR and receives fixed rate payments at 6.25%