Investment Solution (IS) and ExpressIT (EIT) both need to borrow $100000 to finance the development of new products. IS can borrow fixed-interest-rate funds at 9 percent or variable-rate funds at the SFOR plus 1.5% in the debt market. EIT, being less creditworthy, incurs higher costs of borrowing which are a fixed rate of 11 percent and a variable rate of SFOR plus 2.5% Design a swap and calculate the amount of saving on the net cost of borrowing if BankCredit offers an interest swap contract with each IS and EIT, given that BankCredit retains a 20 bp between the rates at which it deals equally with them. Label the graph below. SFOR+2.5% 9% Swap bank commission 7.9% SFOR PAID SFOR RECEIVED 11% 8.1% SFOR+1.5 Investment Solution (IS) and ExpressIT (EIT) both need to borrow $100000 to finance the development of new products. IS can borrow fixed-interest-rate funds at 9 percent or variable-rate funds at the SFOR plus 1.5% in the debt market. EIT, being less creditworthy, incurs higher costs of borrowing which are a fixed rate of 11 percent and a variable rate of SFOR plus 2.5% Design a swap and calculate the amount of saving on the net cost of borrowing if BankCredit offers an interest swap contract with each IS and EIT, given that BankCredit retains a 20 bp between the rates at which it deals equally with them. Label the graph below. SFOR+2.5% 9% Swap bank commission 7.9% SFOR PAID SFOR RECEIVED 11% 8.1% SFOR+1.5