A. Nik Berhad (NB) wishes to borrow a fixed interest long term loan. The firm feels that the fixed rate of interest payable will facilitate a better cash planning. However, because of its credit rating, the best rate it can obtain is 14% per annum. Its bank offers a floating rate of BLR + 2%. Ally Berhad (AB) has been given a good credit rating. It can borrow at 11% fixed rate or at a floating rate of BLR + 1%. The firm however would like to borrow at the floating rate because it believes that the interest rates are going to fall. The BLR is currently 9%. Required: Construct an interest rate swap arrangement between NB and AB. Explain how the proposed arrangement can benefit both firms. (6 marks)