External borrowing opportunities

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Company X wants to borrow $10,000,000 floating for 5 years; company Y wants to borrow $10,000,000 fixed for 5 years. Their external borrowing opportunities are as follows. Company X can borrow at 10% fixed or LIBOR floating. Company Y can borrow 12% fixed or LIBOR +1.5% floating. A swap bank quotes the following rates against the LIBOR:10.2% - 10.3%. The all in cost to firm X is ________%and the all in cost of firm Y is ____________% .

Reference no: EM131317686

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