a$.$ Suppose the U$.$S$.$ multinational wants to borrow $100$ million for three years to finance its British operations, whereas the British company wants to borrow $$150$ million for three years to finance its U$.$S$.$ operations. Explain how a swap bank could arrange a currency swap that would benefit the American company by lowering the rate on its British pound loan by $0\mathrm{.}25\%$ and would benefit the British company by lowering its dollar loan by $0\mathrm{.}25\%.$ Describe the foreign currency market conditions that allow the swap bank to provide such rates.

b$.$ Show the swap arrangement$$s dollar and pound interest payments and receipts in a diagram.