4 pts Question 25 Companies ABC & XYZ can borrow for a three-year term at...
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4 pts Question 25 Companies ABC & XYZ can borrow for a three-year term at the following rates: XYZ ABC Baa Aa Moody's credit rating Fixed-rate borrowing cost Floating-rate borrowing cost LIBOR+0.25% Assume that a swap bank is involved as an intermediary. The swap bank is to give a qudte on three-year dollar interest rate swaps against LIBOR flat. What is the lowest Bid the swap bank can quote? 9.75% 12.75% LIBOR+1.25% 11.5 % 11.75% 10.00%. 9.50%
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