6. Using interest rate swaps and hedging interest payments Consider two firms: Jackson Co. and Goff Co. Both firms plan to issue bonds. Jackson is a highly rated firm that is seeking to issue a floating-rate bond, as it expects interest rates to decrease with time. Goff is a low-rated firm that prefers to issue a bond with a fixed-rate. The rates for each company, for each type of bond, are summarized in the following table First, suppose that Jackson Co. issues a fixed-rate bonds at 9.00\%, and Goff issues floating-rate bonds at LIBOR + 1.00\%. Then, suppose these two companies engage in an interest rate swap, in which Jackson provides variable rate payments to Goff of LIBOR +0.50%. In exchange, Goff makes fixed-rate payments of 9.50%. Relative to what it pays to its bondholders for its fixed-rate bonds, Jackson gains per year in financing cost savings. Relative to what it pays to its bondholders for its floating-rate bonds, Goff gains financing cost savings