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The table below presents the costs of borrowing for Microsoft and FaceBook in Swiss Francss and Yens, and the quotes for interest swaps in Swiss
The table below presents the costs of borrowing for Microsoft and FaceBook in Swiss
Francss and Yens, and the quotes for interest swaps in Swiss Francss and Yens, both
quoted against LIBOR. Microsoft would like to get a fixed rate
loan. FaceBook would like to get a SFr fixed rate loan. How much can
Microsoft save each year if they enter a currency swap agreement?
Swap Bank Quote
a
b
c SFr
d
e None of the above
I know the answer is write, can you just show me how you get that answer
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