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Use vour solution to the followins problem te answer questions 38 and 39 . Counterparties A and BB face the following borrowing costs in the

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Use vour solution to the followins problem te answer questions 38 and 39 . Counterparties A and BB face the following borrowing costs in the marketplace. AA devires a floating rate loan while BB desires a foxed rate loan. A dealer stands ready to pay 5.90% fixed rate against receiving a floatine rate of 3.85% or receive a foxe rate of 6.30K against poyine a floatine rate of 4%. Assume that each party exploits its relative advantage and swaps with the other as proposed by the dealer. Then: Question 38 The ptrcise benefit for all parties from swapping is: Torbasponts 25 bask noints astancounty 75 tiesin points Question 39 2.5pt The net cost of desired financine for M and 68 are respectively. 4.405 and 750x 406 anarome 3.sis and 640x

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