The Current Dollar Yield Curve on the Eurobond Market Is $\bullet$

The current dollar yield curve on the Eurobond market is flat at 7% for top-quality borrowers. A French company of good standing can issue plain-vanilla straight and floating-rate dollar Eurobonds at the following conditions:
$\bullet$ Bond A: Straight bond. Five-year straight dollar Eurobond with a coupon of 7.25%.
$\bullet$ Bond B: FRN. Five-year dollar FRN with a semiannual coupon set at LIBOR plus ¼% and a cap of 14%. The cap means that the coupon rate is limited at 14% even if the LIBOR passes 13.75%.
An investment banker proposes to the French company to issue bull and/or bear FRNs at the following conditions:
$\bullet$ Bond C: Bull FRN. Five-year FRN with a semiannual coupon set at: 13.75%-LIBOR.
$\bullet$ Bond D: Bear FRN. Five-year FRN with a semiannual coupon set at: 2 * LIBOR - 7%.
The coupon on a bull FRN will increase when LIBOR drops. This is sometimes known as a reverse floater. The coupon on the bull FRN cannot be negative, so it has a floor of zero. The bear FRN will benefit from a rise in interest rates. The coupon on the bear FRN is set with a cap of 20.50%.
a. Explain why a bull FRN could be attractive to some investors.
b. Explain why a bear FRN could be attractive to some investors.
c. Explain why it would be attractive to the French company to issue these FRNs compared to current market conditions for plain-vanilla straight Eurobonds and FRNs. The company assumes that LIBOR can never be below 3.5% or above 13.75%.