1) Companies A and B have been offered the following rates per annum on a $30 million six-year loan: Company A Company B Fixed Rate 3.0% 4.6% Floating Rate LIBOR+0.1% LIBOR+0.4% Assume that company A first borrows at a fixed-rate whereas company B borrows at a floating-rate from the market at the rates presented above. Then, the two parties arrange a swap (through a financial intermediary) which transforms company As fixed-rate loan to floating-rate and company Bs floating- rate loan to fixed-rate. Design a swap so that the intermediary earns 0.1% per annum, the final cost of borrowing for company A is LIBOR 0.5% and the final cost of borrowing for company B is 4%