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

The table below presents the costs of borrowing for Caterpillar and ExxonMobil, and a Swap Bank quote against LIBOR. Caterpillar would like to get a floating rate
loan. ExxonMobil would like to get a fixed rate loan. How much can Caterpillar save by entering a swap agreement?
\table[[,\table[[Fixed-Rate Borrowing],[Costs]],\table[[Floating-Rate Borrowing],[Cost]]],[Caterpillar,4,Libor],[ExxonMobil,5.5,Libor+1.1],[Swap Bank Quote,,Ask],[,Bid,4.33%
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