The followings are the financing rates of Firm A and B in the fixed-rate and floating rate markets: Firm A Firm B Fixed rate 9.00% 7.00% Floating rate LIBOR+4.50% LIBOR+1.25% Because of the nature of their business, Firm A would need to secure effectively floating-rate financing, while Firm B to secure effectively fixed-rate financing. A financial institution is willing to be the intermediary in the following interest rate swap between Firm A and B. Will Firm A and B be interested in entering into this interest rate swap? What are the savings in financing costs for Firm A and B respectively? Give your answers to the nearest 0.01%. LIBOR+2.5% LIBOR+2.5% Firm B Financial Institution Firm A 7.30% 7.15% The followings are the financing rates of Firm A and B in the fixed-rate and floating rate markets: Firm A Firm B Fixed rate 9.00% 7.00% Floating rate LIBOR+4.50% LIBOR+1.25% Because of the nature of their business, Firm A would need to secure effectively floating-rate financing, while Firm B to secure effectively fixed-rate financing. A financial institution is willing to be the intermediary in the following interest rate swap between Firm A and B. Will Firm A and B be interested in entering into this interest rate swap? What are the savings in financing costs for Firm A and B respectively? Give your answers to the nearest 0.01%. LIBOR+2.5% LIBOR+2.5% Firm B Financial Institution Firm A 7.30% 7.15%