CB Solutions. Heather O'Reilly, the treasurer of CB Solutions, believes interest rates are going to rise, so she wants to swap her future floating$-$rate interest payments for fixed rates. Presently, she is paying per annum on $$5,100,000$ of debt for the next two years, with payments due semiannually. LIBOR is currently $3\mathrm{.}987\%$ per annum. Spread paid over LIBOR, per annum is $2\mathrm{.}000\%.$ 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 $7\mathrm{.}002\%$ per annum. $($CB Solutions' weighted average co$.$ of capital is $12\%,$ which Heather calculates to be $6\%$ per $6-$month period, compounded semiannually$).$

a$.$ If LIBOR rises at the rate of $50$ basis points per $6-$month period, starting 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 LIBOR rises at the rate of $50$ basis points per $6-$month period, starting tomorrow, how much does Heather save or cost her company by making this swap?

The swap $$ for the first six$-$month period is $$-64,158.($Select from the drop$-$down menu and round to the nearest dollar.$)$

The swap $$ for the second six$-$month period is $$-51,{408}^{TT}.($Select from the drop$-$down menu and round to the nearest dollar.$)$

The swap $$ for the third six$-$month period is $$-38,{658}^{TT}.($Select from the drop$-$down menu and round to the nearest dollar.$)$

The swap $$ for the fourth six$-$month period is $$-25,{908}^{TT}.($Select from the drop$-$down menu and round to the nearest dollar.$)$

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?

The swap $(1)$ for the first six$-$month period is $ $($Select from the drop$-$down menu and round to the nearest dollar.$)$

The swap $(2$ ; $$ for the second six$-$month period is : $($Select from the drop$-$down menu and round to the nearest dollar.$)$

The swap $(3)q,$ for the third six$-$month period is $ $($Select from the drop$-$down menu and round to the nearest dollar.$)$

The swap $(4)$ for the fourth six$-$month period is $ $($Select from the drop$-$down menu and round to the nearest dollar.$)$

$(1)$ cost

$(2)$ cost

$(3)$ cost

$(4)$ cost savings savings $$ savings $$ savings