Company A desires a fixed$-$rate loan. A currently has access to floating interest rate funds at a margin of $0\mathrm{.}5\%$ over LIBOR. Its direct borrowing cost is $13\%$ in the fixed$-$rate bond market. In contrast, company B$,$ which prefers a floating$-$rate loan, has access to fixed$-$rate market at $11\%$ and floating$-$rate funds at LIBOR $+1\mathrm{.}5\%.$ Both want to borrow $$120$ mil for $2$ years.

$1.$ What is the maximum possible savings in this swap? Fill out the table with the

savings in each type of loan.

$2.$ Assume the counterparties would exchange principal and interest payments. Describe what they would borrow before and after the swap, and then, describe the savings realized by both companies