kkR can borrow at a floating rate LIBOR 3.186% or at a fixed rate of 10.01% but prefers to take a floating rate loan Rox can borrow at a floating rate LIBOR 1.365% or at a fixed rate of 9.1% but prefers to take a fixed rate loan Suppose they enter swap agreement and decide to split the cost saving at a ratio of 80% (Rox) to 20% (kkR)

At what rate can Rox borrow the fixed rate fund?

Answer rating: 100% (QA)

To determine the rate at which Rox can borrow the fixedrate funds we need to consider the s... View the full answer