-What Rate Would Company a Have to Pay on Its

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.