THE NEXT TWO QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION.

What is the net cost of funds for MNC$-$A from entering into the swap with MNC$-$B$?$

a$.5\mathrm{.}35\%$

b$.4\mathrm{.}15\%$

C$.4\mathrm{.}85\%$

d$.5\mathrm{.}10\%$

e$.$ None of the options in this question.

What is the incremental benefit in basis points $($bps$)$ for MNC$-$B$\text{'}$s net borrowing cost had there been no intermediary and MNC$-$A directly arranged a swap with MNC$-$B$?$

a$.5bps$

b$.10$ bps

c$.15$ bps

d$.45bps$

e$.30bps$

f$.$ None of the options in this question.