12.Company A wishes to borrow NZ dollars at a fixed rate of interest.Company B wishes to borrow U.S. dollars at a fixed rate ofinterestThe amounts required by the two companies are roughly the same at the current exchange rateThe companies are subject to the following interest rates,which have been adjusted to reflect the impact of taxes: US dollar NZ dollars CompanyA 5% 9.6% Company B 6.5% 10% In a swap that will net a bank (acting as the intermediary) 50 basis points per annum, what will be the effective borrowing rates of Company A and Bunder such swap contracts

a. Aborrowing NZ dollars at 9.1% and B borrowing U.S.dollar at 6.0% per annum.

b. Aborrowing NZ dollars at 9.3% and B borrowing U.S.dollar at 6.2% per annum

c. Aborrowing NZ dollars at 9.7% and B borrowing U.S.dollar at 4.7% per annum

d. Aborrowing US dollars at 4.7% and B borrowing U.S.dollar at 9.7% per annum.

e. Aborrowing U.S.dollars at 6.2% and B borrowing NZ dollar at 9.3% per annum