2. Companies A wishes to borrow U.s. dollars at a fixed rate of interest. Company B wishes to borrow Japanese yen at a current Ignore the effects of taxes and exchange rate risk. (3pts) fixed rate of interest. The amounts required by the two companies are roughly the same at the exchange rate. The following interest rates are the market rates quoted for the two companies. Company A Company B Yen 5.00% 6.50% Dollar 9.60% 10.00% a. In which type of borrowing does Company A has a comparative advantage? Explain briefly. b. In which type of borrowing does Company B has a comparative advantage? Explain briefly. c. What is the maximum cost savings that can be achieved through an interest rate swap