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Business, 06.08.2019 22:10 GachaSkylarUwU

Company a can borrow money at a fixed rate of 7.5 percent or a variable rate set at prime plus 1 percent. company b can borrow money at a variable rate of prime plus +.5 percent or a fixed rate of 8 percent. company a prefers a variable rate and company b prefers a fixed rate. which one of the following statements depicts the most favorable outcome of a swap between companies a and b? company a could pay a fixed rate of 7.25 percent. company a could pay a fixed rate of 7.75 percent. company b could pay a fixed rate of 8 percent. company b could pay the variable prime rate + 1 percent. company a could pay the variable prime rate + .75 percent.

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