The following questions are based on the case provided below Able Inc. and Baker Inc, face the following borrowing costs in the fixed and floating rate markets: Baker Able Fixed-Rate Market 11. 90% 10.75% Floating Rate Market L + 0.20% L -0.15% Each firm desires the rate other than that for which it has comparative advantage. A dealer stands ready to enter into a swap as either a fixed-rate payer or floating-rate receiver (or vice versa). The dealer will pay a fixed 11.22% against LIBOR or receive 11.30% against LIBOR. Assume that each firm borrows in the market in which it has comparative advantage and enters into a swap agreement. Analyze the potential gains from swapping for all parties under the following headlines a. What does the swap dealer earn? (2 point) a b. Obtain the effective loan rate for Able. List all loans Able deals with (4 points) c. By how much is Baker better-off from the swap agreement? (6 points) d. What is the overall benefit of the three parties: Able, Baker and the Dealer? (2 points)