10. Company X wants to borrow $10,000,000 floating for 5 years; company Y wants to borrow $10,000,000 fixed for 5 years. Their external borrowing opportunities are shown below: Fixed-Rate Borrowing Cost 10. 12% Floating-Rate Borrowing Cost LIBOR LIBOR + 1.5% Company X Company Y A swap bank proposes the following interest only swap: X will pay the swap bank annual payments on $10,000,000 with the coupon rate of LIBOR - 0.15%; in exchange the swap bank will pay to company X interest payments on $10,000,000 at a fixed rate of 9.90%. What is the value of this swap to company X? a. Company X will lose money on the deal b. Company X will save 25 bp per year C. Company X will only break even on the deal d. Company X will save 5bp per year