(15%) 1.3. Suppose that firm A could borrow 100 million either at a floating rate of LIBOR plus 10 basis points or at a fixed rate of 5.2%. Furthermore, suppose that firm B could borrow 100 million either at a floating rate of LIBOR plus 50 basis points or at a fixed rate of 6.2%. Firm A requires a floating rate loan and firm B requires a fixed rate loan. Using a block diagram, design an interest rate swap which firm A and firm B could agree to use to transform their loan obligations. (10%) 1.4. Calculate and present diagrammatically the final borrowing cost of firms A and B when a financial intermediary who facilitates the swap earns 3 basis points (0.03%)