Question: U is a U . S . - based MNC with AAA credit; I is an Italian firm with AAA credit. Firm U wants to

U is a U.S.-based MNC with AAA credit; I is an Italian firm with AAA credit. Firm U wants to borrow 1,000,000 for two years and I wants to borrow $1,100,000 for two years. The spot exchange rate is 1.10$/, a swap bank makes the following quotes for 2-year swaps and AAArated firms against USD LIBOR:

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