Question 2 (15 marks) Suppose that IBM would like to borrow fixed-rate yen, whereas Korea Development Bank (KDB) would like to borrow floating-rate dollars. IBM can borrow fixed-rate yen at 6.5 percent or floating-rate dollars at LIBOR + 1.25 percent. KDB can borrow fixed-rate yen at 7.0 percent or floating-rate dollars at LIBOR +2.0 % percent. A) What is the range of possible cost savings that IBM can realize through an interest rate/currency swap with KDB? (10 marks) B) Assuming a notional principal equivalent to $125 million, and a current exchange rate of 105/S, what do these possible cost savings translate into in yen terms