Company Risk can borrow at 10% fixed rate and a LIBOR + 3% variable rate. Company Safe, which has better credit quality, can borrow at a 8% fixed rate and LIBOR + 2.5% variable rate. Company Risky prefers a fixed rate and Company Safe prefers a variable rate. Which of the following is true:

A. Company risky can lower its rate with an interest rate swap, but only if Company Safe is willing to pay a higher rate than it otherwise would.

B. Company Risky might be able to lower its borrowing costs by entering into an interest rate swap.

C. Company risky might be able to lower its borrowing costs by entering into a currency swap

D. Company Risky has to pay 10% for its fixed rate loan