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There are two firms that wish to conduct a comparative advantage swap, their respective borrowing rates in the fixed and floating markets are in the

There are two firms that wish to conduct a comparative advantage swap, their respective borrowing rates in the fixed and floating markets are in the table:

Fixed %

Floating %

Firm A

7.5

Libor+3.6

Firm B

6.8

Libor+2

What is the total or combined interest rate savings for both firms from conducting the swap? (Answer in basis points. E.g. .30% is 30 basis points)

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