Suppose that IBM would like to borrow fixed$-$rate yen $(),$ whereas Korea Development Bank $($KDB$)$ would like to borrow floating$-$rate $$.$ IBM can borrow fixed$-$rate $$ at $5\mathrm{.}5\%$ or floating$-$rate $ at LIBOR $+0\mathrm{.}25\%.$ KDB can borrow fixed$-$rate $$ at $4\mathrm{.}5\%$ or floating$-$rate $ at LIBOR$+1\%.$Assuming a notional principal equivalent to $$125$ million, and a current exchange rate of $105/$$$,$

a$)$ What swap transaction would accomplish this objective? Describe what they would borrow before and after the swap. Assume the counterparties would exchange principal and interest payments. What are the savings realized by both companies in each company$$s currency $($IBM in yen and KDB in $$)?$

b$)$ Do the after swap if now KDB gets all the savings, show what IBM does, what is the new swap rate for KDB and final savings for KDB $(\%$ and in $$).$