). Company A is an AAA-rated firm desiring to issue five-year Floating-rate notes (FRNs). It finds that it can issue FRNs at six-month LIBOR - 1/4 percent or at the six-month Treasury bill rate + percent. Given its asset structure, Treasury Bill rate is the preferred index. Company B is an A-rated firm that also desires to issue five-year FRNs. It finds it can issue at six-month LIBOR + 7/8 percent or at six-month Treasury bill rate + 7/8 percent. Given its asset structure, the six-month LIBOR rate is the preferred index. Assume a notional principle of $15,000,000. Assume the swap bank receives 1/8 percent and the two counterparts share the remaining savings equally. Also, assume that Company A pays six-month Treasury bill rate + percent to swap bank and the swap bank pays the same six-month Treasury bill rate + percent to Company B. Find the net interest cost for company B after swap. (A) LIBOR 1/16 percent (B) Treasury bill rate + 5/16 percent (C) LIBOR + 1/16 percent (D) LIBOR + 7/16 percent (E) None of the above.