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If Two Firms Have the Following Cost of Borrowing,what Is

Question 43

Multiple Choice

If two firms have the following cost of borrowing,what is the net differential for an interest rate swap?
Firm A:
Fixed rate 10.8% per annum; floating rate BBSW+0.3% per annum
Firm B:
Fixed rate 11.6% per annum; floating rate BBSW+1.7% per annum


A) 2.2%
B) 1.4%
C) 0.7%
D) 0.6%

Correct Answer:

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