Question: please help need asap Firm B pays a fixed interest rate of 8.05% to its bondholders, while firm S pays its bondholder a floating rate

please help need asap

Firm B pays a fixed interest rate of 8.05% to its bondholders, while firm S pays its bondholder a floating rate of LIBOR plus 100 basis points. The two firms engage in an interest rate swap transaction that results in just the reverse: firm B pays floating (LIBOR minus 20 basis points) and firm S pays fixed (8.05%). With the swap, the net borrowing rate for firm S is A) 8.85% B) 9.05% C) 9.25% D) 8.05%

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