$*$Please answer question entirely, and show steps to completion$*$ CB Solutions. Heather$$ O'Reilly, the treasurer of CB$$ Solutions, believes interest rates are going to$$ rise, so she wants to swap her future$$ floating$-$rate interest payments for fixed rates.$$ Presently, she is paying per annum on $$5,000,000$ of debt for the next two$$ years, with payments due semiannually. LIBOR is currently $3\mathrm{.}973\%$ per annum. Spread paid over$$ LIBOR, per annum is $2\mathrm{.}000\%.$ Heather has just made an interest payment$$ today, so the next payment is due six months from now. Heather finds that she can swap her current$$ floating$-$rate payments for fixed payments of $7\mathrm{.}003\%$ per annum.$($CB Solutions' weighted average cost of capital is $12\%,$ which Heather calculates to be $6\%$ per$6-$month period, compounded$$ semiannually$).$

a$.$ If LIBOR rises at the rate of $50$ basis points per $6-$month period, starting tomorrow, how much does Heather save or cost her company by making this swap?

b$.$ If LIBOR falls at the rate of $25$ basis points per $6-$month period, starting tomorrow, how much does Heather save or cost her company by making this swap?