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What is the current floating rate available for company b

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Company A, a lower-rated firm, currently has access to floating interest rate funds at a margin of 1.7% over LIBOR and fixed-rate funds at 11%. In contrast, company B, a higher- rated firm, has access to fixed-rate funds at 8%. Both companies enter into an interest rate swap with Bank C. Based on the swap, Bank C would gain 0.4% and each of the two companies would gain 0.5%. What is the current floating rate available for Company B?

Reference no: EM133001858

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