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b. If LIBOR falls at the rate of 25 basis points per 6 month period, starting tomorrow, how moch does Heather save or cost her

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b. If LIBOR falls at the rate of 25 basis points per 6 month period, starting tomorrow, how moch does Heather save or cost her company by making this swap? The swap for the fist sbx-month period is : The swap Ther the second six-month period is: (Select from the drop-down menu and round to the neareet dollar) The swap for the third six-month period is 597,344. (Select from the drop-down menu and round to the nearest dollar.) The nwap for the fourth six-month period is : (Select from the drop-down menu and round to the nearest dollar) O'Reilly and CB Solutions. Heather OReily, the treasurer of CB Solutions, believes interest rates are going to rise, so she wants to swap her future foating rate interest payments for foxed tates Presently, she is paying LIBOR +2.00% per annum on $5,000,000 of sebt for the next two years, with payments due semiannualy. LBOR is currently 3.99% per annum. Heather has just made an interest payment today, so the next payment is due six months from now. Heather finds that she can swap her current floating rate payments for fixed payments of 7006% per annum. (CB Solutions' weighed average cost of capital is 12%, which Heather calculates to bo 6% per 6 -month period, compounded semiannually). a. If LIBOR rises at the rate of 50 basis points per 6 -month period, staring tomorrow, how much does Heather save or cost her company by making this swap? 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? a. If UBOR rises at the rate of 50 basis points per 6 -month period, starting toenorrow, how nuch does Heather save or cost her conipany by making this swap? Tho swap for the first tho-month period is $ (Select from the drop-down menu and round to the nearest dolar.)

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