Question: The first question: (3 marks) Two global companies (A and B), the rating of company (A) (AAA) and the second (B), Company (A) intends to

The first question: (3 marks) Two global companies (A and B), the rating of company (A) (AAA) and the second (B), Company (A) intends to obtain a short-term loan with variable interest (LIBOR), while Company (B) wants to obtain a long-term loan For a period of five years with fixed interest, the following is information about the interest rates available for each of them to borrow from the money market: Statement Company A Company B

A long-term loan for a period of five years 10% 12

Short term loan LIBOR 1% 1.5%

Calculation of the financing cost for each company is required.

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