Suppose Apple wants to borrow money at the floating rate of interest and Blackberry wants to borrow at the fixed rate of interest. The two companies face the following borrowing costs:

Apple: Fixed 2%, Floating 6-month LIBOR

Blackberry: Fixed 3.5%, Floating 6-month LIBOR + 0.5%

Question 1: If Apple and Blackberry cannot sign a SWAP contract, what would be the total cost of borrowing by Apple and Blackberry together? 

Question 2: If Apple and Blackberry sign a SWAP contract, in which Apple pays Blackberry 6-month LIBOR. Suppose the two companies equally split the benefit of the SWAP contract (because the cost of borrowing reduces with the use of the SWAP contract), how much does Blackberry pays Apple?