12. Suppose Microsoft and Sony can borrow in the following markets at the following rates: US $ Market Market Microsoft 6.50% 3.50% Sony 7.00% 3.20% a. What is the total amount of savings that these firms can achieve through borrowing in the appropriate market and then entering into a swap? Design a swap that will allow Sony to capture 3/4 of the available cost savings (do NOT use a swap bank). Describe in which market each party will borrow and the terms of the swap. b. Lets assume that Microsoft prefers fixed yen debt and Sony prefers fixed dollar debt. The swap bank bid-ask quotes are: 2.7% - 2.8% in yen with the floating being $-LIBOR 6.0%-6.1% in dollars with the floating being $-LIBOR Are there still benefits to Sony and Microsoft from using swaps? If so, show the terms of those swaps and their net borrowing costs