Question: Question 4 1 pts The table below presents the costs of borrowing for Caterpillar and Microsoft in Pounds and Euros, and the quotes for interest

Question 4 1 pts The table below presents the costs of borrowing for Caterpillar and Microsoft in Pounds and Euros, and the quotes for interest swaps in Pounds and Euros, both quoted against LIBOR. Caterpillar would like to get a fixed rate Euro loan. Microsoft would like to get a fixed rate Pound loan. What is the all in cost for Caterpillar if they enter a currency swap agreement? Caterpillar Microsoft Borrowing Cost in Pounds Borrowing Cost in Euros 9.00% 11.10% 10.15% 10.00% EUR Swap Bank Quote GBP Bid Ask 9.00% 9.40% Bid Ask 10.80% 10.00% 10.00% 9.00% 10.80% None of the alternatives 9.40%

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