please help me understand these finance questions

E Homework: 4-1 MyLab Question 7, Problem 8-13 HW Score: 38.7%, 12.38 Homework (algorithmic) points Part 2 of 6 Points: 0.57 of 4 Lluvia and Paraguas. Lluvia Manufacturing and Paraguas Products both seek funding at the lowest possible cost. Lluvia would prefer the f borrowing, while Paraguas wants the security of fixed-rate borrowing. Lluvia is the more creditworthy company. They face the following rate better credit rating, has lower borrowing costs in both types of borrowing. Lluvia wants floating-rate debt, so it could borrow at LIBOR + 1.00 borrow fixed at 8.000% and swap for floating-rate debt. Paraguas wants fixed-rate debt, so it could borrow fixed at 12.000%. However, it cou LIBOR + 2.000% and swap for fixed-rate debt. What should they do? (LIBOR is 5.000%.) Lluvia's comparative advantage is 3 %. (Round to three decimal places.) Lluvia's net interest after a swap with Paraguas is |%. (Round to three decimal places.)