-What Rate Would Company a Have to Pay on Its

question 11

Multiple Choice

$\begin{array}{lll}&\text { Fixed-Rate } & \text { Floating-Rate } \\&\text { Borrowing Cost } & \text { Borrowing Cost }\\\text { Company: A} & 6 \% & \text { LIBOR } \\\text { Company: B} & 5 \% & \text { LIBOR }-0.5\end{array}$
-What rate would company A have to pay on its floating rate debt so that an interest rate swap would no longer benefit each party?

• A) LIBOR - 0.5
• B) LIBOR
• C) LIBOR + 0.5
• D) An interest swap is always beneficial for both parties involved.

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Definitions:

Safety Committee

A group within an organization responsible for promoting health and safety in the workplace, often by identifying risks and proposing measures to reduce them.

Safety Officer

An individual responsible for ensuring workplace safety, making sure all regulations and policies related to health and safety are followed.

Unsafe Work

Conditions or practices in the workplace that significantly increase the risk of injury, illness, or death to employees.

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A specific legal entitlement or permission that is restricted by terms or conditions.