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I need help answering these questions with showing the work please Lluvia Manufacturing and Paraguas Products both seek funding at the lowest possible cost. Lluvia

image text in transcribedI need help answering these questions with showing the work please
Lluvia Manufacturing and Paraguas Products both seek funding at the lowest possible cost. Lluvia would prefer the flexibility of floating rate borrowing, while Paraguas wants the security of fixed rate borrowing. Lluvia is the more credit- worthy company. They face the following rate structure. Lluvia, with the better credit rating, has lower borrowing costs in both types of borrowing. a. What is the difference in fixed-rate available between Paraguas Products and Lluvia Manufacturing? b. What is the difference in floating-rate available between Paraguas Products and Lluvia Manufacturing? c. What is the spread differential between fixed-rate and floating-rate available? d. Show the interest rate swap transactions between Paraguas Products and Lluvia Manufacturing if they agree to equally share the savings from the spread differential

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