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X and Y Companies can borrow for a five-year term at the following rates from external sources: Under the swap X pays LIBOR to Y

X and Y Companies can borrow for a five-year term at the following rates from external sources: Under the swap X pays LIBOR to Y and receives 10.75% from Y. A swap bank is quoting fiveyear dollar interest rate swaps at 10.7\% - 10.8\% against LIBOR flat. What is the percentage savings by Company Y under the swap

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