Question: Alpha and Beta Companies can borrow for a five - year term at the following rates: Alpha Beta Moody s credit rating Aa Baa Fixed
Alpha and Beta Companies can borrow for a fiveyear term at the following rates:
Alpha Beta
Moodys credit rating Aa Baa
Fixedrate borrowing cost
Floatingrate borrowing cost LIBOR LIBOR
If there is a swap bank involved and earns of the swap's total benefit. Alpha wants to borrow through floating debts and desires of the total benefit from the swap, and Beta takes the rest of the swap benefit. What is the allincost for Beta through the swap? if your answer is just enter
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