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The table below presents the costs of borrowing for FaceBook and ExxonMobil, and the a Swap Bank quote against LIBOR. FaceBook would like to get
The table below presents the costs of borrowing for FaceBook and ExxonMobil, and the a Swap Bank quote against LIBOR. FaceBook would like to get a $3,500,000.00 floating rate loan. ExxonMobil would like to get a $3,500,000.00 fixed rate loan. How much can FaceBook save each year by entering a swap agreement? Fixed-Rate Floating Rate Borrowing Cost Borrowing Cost FaceBook 10.00 LIBOR Exxon Mobil 13.50 LIBOR 2.60 Swap Bank Quote Bid Ask 10.10% 10.83% $3.500 $29.050 $2.450 $25.550 None of the above The table below presents the costs of borrowing for FaceBook and ExxonMobil, and the a Swap Bank quote against LIBOR. FaceBook would like to get a $3,500,000.00 floating rate loan. ExxonMobil would like to get a $3,500,000.00 fixed rate loan. How much can FaceBook save each year by entering a swap agreement? Fixed-Rate Floating Rate Borrowing Cost Borrowing Cost FaceBook 10.00 LIBOR Exxon Mobil 13.50 LIBOR 2.60 Swap Bank Quote Bid Ask 10.10% 10.83% $3.500 $29.050 $2.450 $25.550 None of the above
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