Question $4$

$1pts$

The table below presents the costs of borrowing for Dell and Verizon in Euros and Pounds, and the quotes for interest swaps in Euros and Pounds, both quoted against LIBOR. Dell would like to get a fixed rate Pound loan. Verizon would like to get axed rate Euro loan. What is the all in cost for Dell if they enter a currency swap agreement?

$\backslash$table$[[,$Borrowing Cost in Euros,Borrowing Cost in Pound,$],[$Dell$,2\mathrm{.}00\%,12\mathrm{.}50\%,],[$Verizon$,2\mathrm{.}60\%,11\mathrm{.}00\%,],[$Swap Bank Quote,,,$],[$EUR$,,$GBP$,],[$Bid$,$Ask,Bid,Ask$],[2\mathrm{.}00\%,2\mathrm{.}43\%,11\mathrm{.}00\%,12\mathrm{.}34\%$