Two companies A and B want to borrow in the markets that they do not have a comparative advantage. The following table shows their borrowing rates. (22 points) (1) In which market does company A and company B have a comparative advantage, respectively? (2) According to the comparative advantage argument, what is the savings for each company if they enter into an interest rate swap and use a financial institution which charges 12 basis points? Assuming that the total potential savings is split evenly between companies A and B. (3) If the total potential savings is split evenly between companies A and B, according to the comparative advantage argument, what are the net borrowing costs for A and B, respectively? (4) Complete the following interest rate swap which will leads to the net borrowing costs for A and B as you calculated in (3). (4.1) Mark the directions of the lines in the following diagram. (4.2) What are the values of (I), (II), (III), and (IV)? Show necessary calculations. Two companies A and B want to borrow in the markets that they do not have a comparative advantage. The following table shows their borrowing rates. (22 points) (1) In which market does company A and company B have a comparative advantage, respectively? (2) According to the comparative advantage argument, what is the savings for each company if they enter into an interest rate swap and use a financial institution which charges 12 basis points? Assuming that the total potential savings is split evenly between companies A and B. (3) If the total potential savings is split evenly between companies A and B, according to the comparative advantage argument, what are the net borrowing costs for A and B, respectively? (4) Complete the following interest rate swap which will leads to the net borrowing costs for A and B as you calculated in (3). (4.1) Mark the directions of the lines in the following diagram. (4.2) What are the values of (I), (II), (III), and (IV)? Show necessary calculations