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CB Solutions. Heather OReby, the treasurer of CB Sobsions, believes interest rates ave going to rise, so she wants to swap her futue floating-rate interest

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CB Solutions. Heather OReby, the treasurer of CB Sobsions, believes interest rates ave going to rise, so she wants to swap her futue floating-rate interest payments for fued rates. Presenty, she annum. (CB Solutions' weighted average cost of captal is 12%, which Heather calculates to be 6% por 6-moneh period, compounded semiannualy) a. If UBOR rises at the rate of 60 basis points per 6 -month period, staning loenorros, how much does Heather save or cost her company by making ths swap? b. If LBOR fals at the rote of 25 babis points per G-month period, starting tomorrow, how much does Hoather save oc coot her company by meking this swap? The swas for the finst wo-menth period is : (Silect trom the drop-oown manu and round to the nearest dolar)

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