2. Following proposals by SWAP bank, complete the table: Company X: Company X prefers LIBOR The company will pay the annual payments on $10,000,000 with the rate of 10%. The company will pay the swap bank annual payments on $10,000,000 with the rate of LIBOR -0.15%. The SWAP bank will pay to company X interest payments on $10,000,000 at a fixed rate of 9.9%. Company Y: Company Y prefers 12% The company will pay the annual payments on $10,000,000 with the rate of LIBOR+ 1.5%. The company will pay the swap bank annual payments on $10,000,000 with the rate of 10.3%. The SWAP bank will pay to company X interest payments on $10,000,000 at a fixed rate of LIBOR -0.15%. 10% LIBOR -0.15% LIBOR -0.15% SWAP Bank 9.9% 10.3% LIBOR+1.5% Bank A Swap Bank Company B Pays Receives Net (=Pays + Receives) Preferred payment Savings QSD