The table below shows the yields on the fixed and floating borrowing choices available to three firms. Firms A and B want to be exposed to a floating interest rate while Firm C would prefer to pay a fixed interest rate. Which pair(s) of firms (if any) should borrow in the market they do not want and then enter into a fixed-for-floating interest-rate swap.

LIBOR, which stands for the London Interbank Offered Rate, is a floating interest rate.

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Firm A Firm B Firm C Fixed Rate 7% 1290 10% Floating Rate LIBOR+50 bps LIBOR+150 bps LIBOR+150 bps