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Suppose that Firm A as well as Firm B want to borrow 1 0 0 million euros. The best offers that they have got from

Suppose that Firm A as well as Firm B want to borrow

100

million euros. The best offers that they have got from banks are following

(

suppose that the offers differ only by the interest rate

)

\

table

[[,

Fixed Rate Loan,Floating Rate Loan

], [

Firm A

, 8 %, 6 -

month EURIBOR

+ 1 %

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