Counterparty A can borrow from the floating rate market at LIBOR + 0.5% and Counterparty B can borrow from the Eurobond market at 7%.

If Counterparty A pays 7.35% into the swap and Counterparty B pays the LIBOR rate plus 0.5% into the swap, then the overall cost to borrow by Counterparty A is?

Answer rating: 100% (QA)

Since Counterparty A can borrow at LIBOR 05 and Counterparty B can borrow at 7 they can each benefi... View the full answer