a. If LIBOR rises at the rate of 50 basis points per 6-month period, starting tomorrow, how much does Heather save or cost her company by making this swap?

The swap______ for the first six-month period is $________

The swap______ for the second six-month period is $________

The swap______ for the third six-month period is $________

The swap______ for the fourth six-month period is $________

b. If LIBOR falls at the rate of 25 basis points per 6-month period, starting tomorrow, how much does Heather save or cost her company by making this swap?

The swap______ for the first six-month period is $________

The swap______ for the second six-month period is $________

The swap______ for the third six-month period is $________

The swap______ for the fourth six-month period is $________