3. (15 points) Companies A and B have been offered the following rates per annum on a Sio million five-year loan: Company Company B Fixed rate 6.0% 7.5% Floating rate LIBOR 0.19 LIBOR +0.69 Company A requires a floating-rate loan company B requires a fixed-rate loan. Design a swap that will net a bank, acting as intermediary, 0.46% per annum and that will appear equally attractive to both companies. a). What are the comparative advantages for A and B, respectively? b). Show the swap arrangement below. B 69 Bank Liner+ 0.00 TOX Inbar c). What are the borrowing costs for A and B after the swap respectively