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Business, 30.11.2019 03:31 dawsoncollins4117

Newman industries is a aaa-rated company that needs to fund a project with an estimated life of 10 years. it can borrow at a fixed rate of 10.50% or it can borrow at a floating rate of 6-month libor. costanza industries is a bbb-rated company that also needs to borrow for 10 years. it can borrow at a fixed rate of 12.00% or it can borrow at a floating rate of 6-month libor +.25%. the swap quote from the del boca vista bank is: 11.00% 11.25% vs. libor. show how much each company saves and how much is made by dbvb.

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