Suppose company ABC has a 10-year fixed-rate debt $200 M with an annual interest rate of 8 %. Bank XYZ has an average floating-rate liability of $150M. The floating rate is the market prime rate (call it r). What kind of risks do ABC and XYZ face? To hedge the risk, ABC and XYZ get in an interest rate swap with a dealer D for a nominal principal of $150M for the next ten years. As a result, D agrees to pay ABC 7.9 % annually. ABC agrees to pay D the market rate r. D also agrees to pay XYZ the market rate r, and XYZ agrees to pay D 7.95% annually. What have these swap transaction achieved for ABC, XYZ and D? If the market interest rate is 7.5 % in year 2, who benefits from doing the swap? Who suffers a loss? Explain Why