121.Company X can borrow at 12% fixed and Prime plus 1.6%.Company Y can borrow at 10% fixed rate and Prime plus 1%.Determine whether an interest rate swap will be of benefit to both parties.

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The Answer of 121.Company X can borrow at 12% fixed and Prime plus 1.6%.Company Y can borrow at 10% fixed rate and Prime plus 1%.Determine whether an interest rate swap will be of benefit to both parties.

121Company X Can Borrow at 12% Fixed and Prime Plus