Axil CorpHas Not Tapped the Deutsche Mark Public Debt Market Because

Multiple Choice

Axil Corp.has not tapped the Deutsche mark public debt market because of concern about a likely appreciation of that currency and only wishes to be a floating-rate dollar borrower,which it can be at LIBOR + 1%.Bevel Corp.strongly prefers fixed-rate DM debt,but it must pay 1.5% more than the 6 1/4% coupon that Axil's DM notes would carry.Bevel,however,can obtain Eurodollars at LIBOR + ½%.
-What is the maximum possible cost savings to Axil from engaging in a currency swap with Bevel?

A) 1%
B) 75%
C) 2%
D) 1.25%