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The table below presents the costs of borrowing for Amazon and Tesla, and the a Swap Bank quote against LIBOR. Amazon would like to get

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The table below presents the costs of borrowing for Amazon and Tesla, and the a Swap Bank quote against LIBOR. Amazon would like to get a floating rate loan. Tesla would like to get a fixed rate loan. How much can Tesla save by entering a swap agreement in bps? Fixed-Rate Floating-Rate Borrowing Cost Borrowing Cost 3.00 LIBOR 4.00 LIBOR 0.70 Amazon Tesla Swap Bank Quote Bid 3.10% Ask 3.23% O 7 bps 23 bps 10 bps 13 bps

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