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The table below presents the costs of borrowing for Nike and Tesla, and the a...

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Finance

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The table below presents the costs of borrowing for Nike and Tesla, and the a Swap Bank quote against LIBOR. Nike would like to get a $5,000,000.00 floating rate loan. Tesla would like to get a $5,000,000.00 fixed rate loan. How much can Nike save each year by entering a swap agreement? Fixed-Rate Floating-Rate Borrowing Cost Borrowing Cost 7.00 LIBOR 10.00 LIBOR 2.30 Nike Tesla Swap Bank Quote Bid Ask 7.55% 7.18% $9,000 O $27.500 $7,500

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