$3.)($MCQ$)(2$ points$)$ Good Company prefers variable to fixed rate debt. Bad Company prefers fixed to variable rate debt. Assume that both Companies could issue bonds as follows:

$\backslash$table$[[,$Eixed Rate Bond,,Variable Rate Rond$],[$Good Company,$10\%,$LIBOR $1\%,],[$Bad Company,$12\%,$LIBOR $1\mathrm{.}5\%,]]$

Given this information, an interest rate swap:

A$.$ will probably not be advantageous to Good Company because it can issue both fixed and variable debt at more attractive rates than Bad Company.

B$.$ attractive to both parties could result if Good Company agreed to provide Bad Company with variable rate payments at LIBOR $1\%$ in exchange for fixed rate payments of $10\mathrm{.}5\%.$

C$.$ attractive to both parties could result if Bad Company agreed to provide Good Company with variable rate payments at LIBOR $1\%$ in exchange for fixed rate payments of $10\mathrm{.}5\%.$

D$.$ None of these is correct.