Company $"$A$"$ and $"$B$"$ have the following borrowing opportunities: $ A B C$5\%$ $ LIBORN $6$ $ LTBOR$+$ hr The current exchange rate is $\backslash$$ $1\mathrm{.}6=\backslash$$$1\mathrm{.}00.$ Company $"$A$"$ is in Milan, Italy and wishes to borrow $$1,000,000$ at a floating rate for $5$ years and company $"$B$"$ is a U$.$S$.$ firm that wants to borrow $625,000$ for $5$ years at a fixed rate of interest. You are a swap dealer, who needs to earn a spread of $10$ basis points. The rest of QSD will be equally shared by company $"$A$"$ and company $"$B$"(1)$ Calculate the Quality Spread Differential $($QSD$).(2)$ As a swap dealer, quote a swap arrangement for company $"$A$"$ and $"$B$".(3)$ Explain how each party benefits from engaging in the swap based on the proposed terms and show how this swap arrangement eliminates exchange rate risk for both A and B$.$