12. Consider Bank A and Company B. Each needs $10 million dollars for an investment project and plans to borrow the money over five years. The table below shows the fixed and flexible rates Bank A and Company B can borrow in the market. Company B 5 per cent Bank A Fixed rate3 per cent Flexible rate CDOR CDOR 1.25 per cent (a) Calculate the quality spread difference; (b) Propose an interest swap agreement that is beneficial to Bank A, Company B and Swap Bank SB; (c) Calculate the amount of money Bank A and Company B save each year and how much Swap Bank SB makes each year as a result of the swap