O'Reilly and CB Solutions. Heather O'Reilly, the treasurer of CB Solutions, believes interest rates are going to rise, so she wants to swap her future floating-rate interest payments for fixed rates. Presently, she is paying LIBOR +2.00% per annum on $5,100,000 of debt for the next two years, with payments due semiannually. LIBOR is currently 4.01% per annum. Heather has just made an interest payment today, so the next payment is due six months from now. Heather finds that she can swap her current floating-rate payments for fixed payments of 7.005% per annum. (CB Solutions' weighted average cost of capital is 12%, which Heather calculates to be 6% per 6-month period, compounded semiannually). a. If LIBOR rises at the rate of 50 basis points per 6-month period, starting tomorrow, how much does Heather save or cost her company by making this swap? b. If LIBOR falls at the rate of 25 basis points per 6-month period, starting tomorrow, how much does Heather save or cost her company by making this swap? a. If LIBOR rises at the rate of 50 basis points per 6-month period, starting tomorrow, how much does Heather save or cost her company by making this swap? The swap (1) for the first six-month period is s (Select from the drop-down menu and round to the nearest dollar.) The swap (2) for the second six-month period is $ (Select from the drop-down menu and round to the nearest dollar.) The swap (3) for the third six-month period is $ (Select from the drop-down menu and round to the nearest dollar.) The swap (4) for the fourth six-month period is (Select from the drop-down menu and round to the nearest dollar.) b. If LIBOR falls at the rate of 25 basis points per 6-month period, starting tomorrow, how much does Heather save or cost her company by making this swap? The swap (5) 5 for the first six-month period is S (Select from the drop-down menu and round to the nearest dollar.) The swap (6) for the second six-month period is $ (Select from the drop-down menu and round to the nearest dollar.) The swap (7) for the third six-month period is $ (Select from the drop-down menu and round to the nearest dollar.) The swap (8) for the fourth six-month period is S (Select from the drop-down menu and round to the nearest dollar.) (1) O cost O savings (5) O cost (2) O cost savings (3) O cost O savings (4) O cost O savings (6) O cost O savings (7) O cost savings (8) O cost O savings O savings