TC (US firm) prefers to borrow fixed-rate yen while DC (Japanese firm) prefers to borrow float-rate US dollars. TC is offered 4.5% fixed and LIBOR+0.25% float, while DC is offered 4.9% fixed and LIBOR+0.8% float. Assume a notional principle of $125m and the current exchange rate of Yen 105/US$ (currently it is this rate)

1- How much would be the possible cost savings between TC and DC?

2- How ALL the possible cost savings translate to Yen terms for TC?

3- If there is a mediating bank that charges 7 basis points, and assuming that TC realizes all the savings in its borrowing costs, how these translate into Yen terms?