Suppose Liptenstein Company engages in a plain vanilla interest rate swap with Parable Company, where Liptenstein Company is the party making fixed interest rate payments. Suppose there are two scenarios: (1) prevailing market interest rates are 6% when the swap is created, and (2) prevailing market interest rates are 4% when the swaps are created. Under which scenario would you expect the fixed interest rate on the swap to be higher? O Scenario 1 O Scenario 2 Suppose Blackwell Bank engages in a plain vanilla interest rate swap with Hawkeye Bank, where Blackwell Bank is the party making fired interest rate payments. Suppose there are two scenarios: (1) 7 investors are willing to serve as the counterparty on the swap, and (2) 2 investors are willing to serve as the counterparty on the swap. Under which scenario would you expect the fixed interest rate on the swap to be lower? O Scenario 1 @ Scenario 2 Suppose Maplewood Company engages in a plain vanilla interest rate swap with Hawkeye Bank, where Maplewood Company is the party making fixed interest rate payments. Suppose there are two scenarios: (1) Hawkeye Bank is based in a country that is known to have political instability, and (2) Hawkeye Bank has not missed a payment on debt obligations in over 50 years. Under which scenario would you expect the fixed interest rate on the wwap to be higher? Scenario 1 0 Scenario 2