Lucas Maestri, Apple CFO, informed Tim Cook, Apple CEO, that their current floating rate debt arrangement needs to be evaluated and possibly swapped for fixed-rate security given the expected rate change announced by the Fed. The current balance is $120,000,000 and the 6% annual interest tied to the treasury bond rate is paid twice every August and February. You are Apples investment banker and can help to swap current floating rate payments for fixed payments of 8.50% per annum. Assuming today is March 1, 2022:

1. If the treasury rate falls at the rate of 0.30% every six months, how much does Apple save or lose based on this swap for the next two years?
2. If the treasury bond rate rises at the rate of 0.5% every six month period, how much does Apple save or lose due to the planned swap for the next two years?

What is your advice in both situations?