Rosie's can borrow money at a fixed rate of 9.4% or a variable rate set at prime plus 1.25%. Ed's can borrow money at a variable rate of prime plus 1% or a fixed rate of 8.9% Rosie's prefers a fixed rate and Ed's prefers a variable rate. Given this information, which one of the following statements is correct? Both companies can profit in a swap which will allow Rosie's to pay a 9% fixed rate. There are no terms under which Rosie's and Ed's can swap interest rates. After swapping interest rates with the Ed's, Rosie's will end up paying about 1.13% over prime. Ed's has the best chance of profiting if they do an interest rate swap with Rosie's. Ed's will end up with a fixed rate around 9.15%