Assume that the bank you work for has borrowed money and is paying a floating rate equal to the six month SOFR rate at the beginning of each period for the next two years. The bank then enters into a swap in which it pays a fixed rate and receives a floating rate of interest, with payments every six months for the next two years. After the swap which of the following statements is true?

The swap has transformed a fixed rate commitment by the bank into a fixed rate commitment at a different rate than the original loan.

The swap has transformed a floating rate commitment by the bank into a fixed rate commitment.

The swap has transformed a fixed rate commitment by the bank into a floating rate commitment.

The swap has transformed a floating rate commitment by the bank into a floating rate commitment at a different rate than the original loan