3. Suppose that company B is borrowing $80 million for 5 years at LIBOR minus 20 basis points. Company B uses swap to convert floating rate borrowings into fixed-rate borrowings. (25 points) borrow (Libor - 5% 0.20% Company A A Company B Libor Year LIBOR rate Floating Loan Swap (cash flow paid) Swap (cash flow received) Net Cash Flow Year 1 4% Year 2 4.5% Year 3 5% Year 4 6% Year 5 6.5% Total Net Cash Flow b) Why do you think that Company B prefers a fixed-rate debt