Desert Trading Company has issued $100 million worth of long-term bonds at a fixed rate of 8%. The firm then enters into an interest rate swap where it pays a LIBOR rate of 5% and receives a fixed 6% on notional principal of $100 million. What is the firm’s effective interest rate on its borrowing?

Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position