Re-uploaded to be more easily readable

please answer both A and B

Save Homework: C8HW Score: 0 of 20 pts 2 of 4 (0 complete) HW Score: 0%, 0 of 100 pts Question Help Problem 8-6 (algorithmic) O'Reilly and 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 LIBOR +2.00% per annum on S5,100,000 of debt for the next two years, with payments due semiannually. LIBOR is currently 3.99% per annum. 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 7.008% per annum. (CB Solutions' weighted average cost of capital is 1296, which Heather calculates to be 696 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? a. If LIBOR rises at the rate of 50 basis points per 8-month period, starting tomorrow, how much does Heather save or cost her company by making this swap? The swap cost for the first six-month period is 8 (Select from the drop-down menu and round to the nearest dollar.)