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 $$5,000,000$ of debt for the next two years, with payments due semiannually. LIBOR is currently $3\mathrm{.}994\%$ 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 $7\mathrm{.}006\%$ per annum. $($CB Solutions' weighted average cost 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 $$,.($Select from the drop$-$down menu and round to the nearest dollar.$)$