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Suppose your corporation can currently borrow $10,000,000 for 20 years at 9.8% fixed, or at a variable rate of Prime+5.25%. If a swap dealer is

Suppose your corporation can currently borrow $10,000,000 for 20 years at 9.8% fixed, or at a variable rate of Prime+5.25%. If a swap dealer is offering to swap payments of Prime+5% for 8.9% fixed, what would be the lowest fixed-rate borrowing cost available for the corporation?

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