6. Suppose that on Dec. 31, 2006, Company A and Company B enter into a five-year swap with the following terms: Company A pays Company B an amount equal to 6% per annum on a notional principal of $20 million. Company B pays Company A an amount equal to one-year LIBOR + 1% per annum on a notional principal of $20 million. Assume that LIBOR is 5.5%. a. Show the cash flows each party pays the other. What is the net difference? b. Assume after 2 years, LIBOR increases to 7%, what would happen? c. Assume after 3 years LIBOR decreases to 4.5%, what would happen?