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Business, 03.12.2019 00:31 DnakMeme6e7272727272

Kramerica industries is a aaa-rated company that needs to fund a project with an estimated life of 10 years. it can borrow at a fixed rate of 8.75% or it can borrow at a floating rate of 3-month libor. vandelay industries is a bbb-rated company that also needs to borrow for 10 years. it can borrow at a fixed rate of 10.50% or it can borrow at a floating rate of3-month libor + .25%. produce a swap quote that reduces the borrowing costs of both kramerica and vandelay industries, and makes a spread for the swap bank, super terrific national bank. show how much each company saves and how much is made by stnb

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