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Consider the scenario. An American company would like to borrow fixed-rate yen. They can borrow fixed-rate yet at 5.4% or floating-rate dollars at LIBOR+1.24%. There is also an Asian company who would like to borrow floating-rate dollars. They can borrow fixed-rate yet at 5.8% or floating-rate dollars at LIBOR+1.7%. What is the total cost savings which can be realized through an interest rate/currency swap between the two?

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