Question: Amazon would like to get a floating rate loan $10,000,000. It can borrow at 7.98% or Libor + 1%. A swap bank quotes 7.5 -

Amazon would like to get a floating rate loan $10,000,000. It can borrow at 7.98% or Libor + 1%. A swap bank quotes 7.5 - 7.66 against flat Libor. How much can Amazon save (in basis points) by entering a swap agreement?

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