First Bank can issue one$-$year, floating$-$rate CDs at prime plus $1$ percent or fixed$-$rate CDs $12\mathrm{.}5$ percent. Second Bank can issue one$-$year floating$-$rate CDs at prime plus $0\mathrm{.}5$ percent fixed$-$rate CDs at $11\mathrm{.}0$ percent.

a$.$ What is a feasible swap with all the benefits going to First Bank?

b$.$ What is a feasible swap with all the benefits going to Second Bank?

c$.$ Diagram each situation.

d$.$ What factors will determine the final swap arrangement?