A company FORTIS, issued a 5 years loan with a gloating rate EURIBOR + 0.75%. It sets up a fixed / variable swap with a bank. The quotation of the swap is as follows: 5-year swap: EURIBOR /3.75%.
What is the cost of borrowing of this company after swap?
a. 0.75%b. 4.5%c. EURIBOR + 4.5%d. None of the above
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