Can you help with part a of this question? I have no idea where to start.

6. Interest Rate Swaps -year debt on the same date. r alternatives. Market conditions _ 1&1" pany A is advised that it can probably issue notes in a xed rate structure at 4.30% or on oating rate terms at LIBOR + 200 bps. Company B has told its banker that it desires a xed rate liability. Company B is advised to expect a market rate of 3.65% for its xed rate debt and LIBOR + 100 basis points (bps) for its oating rate debt. The banker also checks the swap market on each customer's behalf. In an email to each customer, the banker notes the best terms in the dealer market on a standard US dollar swap for a 5-year xed-foroating swap: CUSTOMER PAYS 2.52% xed to dealer and Receives LIBOR from dealer Or ' CUSTOMER RECEIVES 2.48% xed from dealer and Pays LIBOR to dealer V a. Write a short memo from the investment banker (YOU) to gig}; rm ' explaining how each rm should exploit its comparative advantage in , the debt market to achieve its desired funding exposure. This memo In st advise on each company's debt issuance choiceas well, as its c'om at; gas? interest rate swap contract choice (if any). Include the effective f ndi ' rate that each company achieves in its chosen structure (as we as savings versus any alternative strategy, if any). - u ' irii "i " , i. A good swap memo will always includeian explanatd ?' ' ii. You need TWO separate memosil(oneci'to" 'ch " Position the two memos in TWO sep ' rat" b .tit'iit'nr. b. Report the swap dealer's net positibn' 32m company follows its banker's advice. 1' / V. ' ' V