The Vandy Corporation would like to borrow floating rate yen, which it can do at LIBOR+ 1%. It can also borrow fixed rate yen at 6%. Duke Corporation has a strong preference for fixed-rate yen debt, which will cost it 7%. Duke could also borrow floating yen at LIBOR + 0.5%. (a) In what type of borrowing does Vandy Corporation have a comparative advantage? (1 point) (b) If a swap were arranged, what is the maximum savings that could be divided between the two parties? ( 1 points) (c) If the swap involves a payment of 7% fixed rate debt, identify the floating rate payment if the corporations split the swap savings equally. (3 points)