Two firms have gotten quotes for fixed rate and variable rate loans, which are shown in the table below. A) Which firm has an absolute borrowing advantage? Which firm has a relative borrowing advantage in which market? B) Assume that the firms wanted to enter into a swap. What is the maximum amount of interest that the firms jointly would be willing to pay a financial intermediary to arrange the swap? C) Design a swap contract that has Firm A effectively paying a fixed rate, Firm B effectively paying a variable rate, has a financial intermediary earning a 0.4% fee, and splits the remaining surplus between the flrms equally. Show that each party to the swap earns or pays the percentage that it should under the swap agreement. (There's extra space for your solution on the next page if you need it)