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(2) Companies X and Y have been offered the following rates per annum on a $10 million 5-year investment Company X Company Y Floating LIBOR+0.5%

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(2) Companies X and Y have been offered the following rates per annum on a $10 million 5-year investment Company X Company Y Floating LIBOR+0.5% LIBOR+1% Fixed 8% 9.2% Company X prefers a floating-rate loan for the investment; company Y prefers a fixed-rate loan. To reduce financing costs, X borrows at a fixed rate, while Y borrows at a floating rate. Design a swap contract such that company X has 0.4% interest savings and company Y has 0.3% interest savings

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