Question: ( 5 points ) Consider the borrowing rates for Parties A and B . A wants to finance a $ 1 0 0 , 0

(5 points) Consider the borrowing rates for Parties A and B. A wants to finance a $100,000,000 project at an annual fixed rate. B wants to finance a $100,000,000 project at an annual floating rate. Both firms want the same maturity of five years.
\table[[Firm,Fixed Rate,Floating Rate],[A,$10.3%,Prime +1%
(5 points) Consider the borrowing rates for Parties A and B.

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