1. Nexxon and Woogle both want to borrow $50 million for five years and have been offered the following rates per annum: Nexxon Woogle - Fixed rate 5.0% 6.2% floating rate LIBOR+0.4% LIBOR+1.0% Nexxon wants to borrow at a floating rate, whereas Woogle wants to borrow at a fixed rate. Design and explain a swap agreement to ensure that Nexxon ends up with floating-rate funds and Woogle ends up with fixed rate funds without a consideration of a financial institution. You must show how to get the fixed rate (R%) in exchange of LIBOR under the swap and the net effect to each party in your explanation. ????% ?% ?????????% Nexxon Woogle LIBOR [Explanation] 1. Nexxon and Woogle both want to borrow $50 million for five years and have been offered the following rates per annum: Nexxon Woogle - Fixed rate 5.0% 6.2% floating rate LIBOR+0.4% LIBOR+1.0% Nexxon wants to borrow at a floating rate, whereas Woogle wants to borrow at a fixed rate. Design and explain a swap agreement to ensure that Nexxon ends up with floating-rate funds and Woogle ends up with fixed rate funds without a consideration of a financial institution. You must show how to get the fixed rate (R%) in exchange of LIBOR under the swap and the net effect to each party in your explanation. ????% ?% ?????????% Nexxon Woogle LIBOR [Explanation]