Lluvia and Paraguas. 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 creditworthy company. They face the following rate structure.$$ Lluvia, with the better credit$$ rating, has lower borrowing costs in both types of borrowing. Lluvia wants$$ floating$-$rate debt, so it could borrow at LIBOR plus $1\mathrm{.}000\%.$However$,$ it could borrow fixed at $9\mathrm{.}500\%$ and swap for$$ floating$-$rate debt. Paraguas wants$$ fixed$-$rate debt, so it could borrow fixed at $13\mathrm{.}500\%.$However$,$ it could borrow floating at LIBOR plus $2\mathrm{.}000\%$ and swap for$$ fixed$-$rate debt. What should they$$ do$?($LIBOR is $6\mathrm{.}500\%.)$