Question 31 2.86 pts Assume that A is a credit-worthy firm that can borrow at 8.1% fixed rate or at LIBOR + 0%. A is currently borrowing at a fixed rate but would like to borrow at a floating rate. B is a less-credit-worthy firm and can borrow at 9.4% fixed rate or at LIBOR + 1%. B is currently borrowing at a floating rate but would like to borrow at a fixed rate. Assuming that both firms want a 10-year maturity and the Swap Bank quotes are currently 8.2% - 8.3%, how much how much would each party pay after the swap contract where both A and B will save 10bp respectively? A will pay LIBOR + 1%, and B will pay 8.1%. A will pay LIBOR, and B will pay LIBOR + 1%. A will pay LIBOR -0.1%, and B will pay 9.3%. A will pay LIBOR -0.5%, and B will pay 9.4%