Bank A has a funding cost of $L + 10$ basis points, where $L$ is Libor. Bank B has funding cost of $L + 80$ basis points. There is a reference obligation currently yielding $L + 140$ basis points. In a "Funding Cost Arbitrage," Bank A pays B the total return on the reference obligation in exchange for a payment of $L + x$ basis points by Bank B, where:

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The Answer of Bank A has a funding cost of $L + 10$ basis points, where $L$ is Libor. Bank B has funding cost of $L + 80$ basis points. There is a reference obligation currently yielding $L + 140$ basis points. In a "Funding Cost Arbitrage," Bank A pays B the total return on the reference obligation in exchange for a payment of $L + x$ basis points by Bank B, where:

Bank a Has a Funding Cost Of L+10L + 10L+10 Basis Points, Where

Bank a Has a Funding Cost Of $L + 10$ Basis Points, Where