Company A can borrow money at a fixed rate of 7.5 percent or a variable rate set at prime plus 1 percent. Company B can borrow money at a

variable rate of prime plus +.5 percent or a fixed rate of 8 percent. Company A prefers a variable rate and company B prefers a fixed rate. The swap dealer takes a profit of .5% and the remaining savings is split equally between the two parties. Specify what rate each party will pay and , receive from the dealer and how the dealer will lock in their profit.