Company A can issue floating-rate debt at LIBOR + 1%, and it can issue fixed rate debt at 9%. Company B can issue floating-rate debt at LIBOR + 1.5%, and it can issue fixed-rate debt at 9.4%. Suppose A issues floating-rate debt and B issues fixed-rate debt, after which they engage in the following swap: A will make a fixed 7.95% payment to B, and B will make a floating-rate payment equal to LIBOR to A. What are the resulting net payments of A and B? SHOW ALL WORK. a. A pays a fixed rate of 9%, B pays LIBOR + 1.5%. b. A pays a fixed rate of 8.95%, B pays LIBOR + 1.45%. c. A pays LIBOR plus 1%, B pays a fixed rate of 9.4%. d. A pays a fixed rate of 7.95%, B pays LIBOR. e. None of the above answers is correct.