8. [Interest rate swaps extention of Problem 10-7] FIF's fis- cal 2000 annual report also discloses the following information regarding interest rate swaps Notional amount Weighted-average receive rate Weighted-average pay rate Weighted-average remaining term (in months) 1999 2000 $25,000 $25,000 5.5% 7.0% 52% 5 2% 17 $

a. From the data shown. describe the swaps

b. Compute the effect of the swaps on FIF's interest expense each year

c. Explain how the swaps altered FIF's sensitivity to changes in Interest rates.