4. Companies X and Y are offered the following rates per annum on a $5 million 10-year investment, and Company X requires a fixed-rate investment; company Y requires a floating- rate investment. Bank of America (BOA) is planning to arrange a swap with a 20-basis-point spread, which will appear equally attractive to X and Y. Company X Company Y Fixed Rate 8.0% 8.8% Floating Rate LIBOR LIBOR (A)Compute the total benefits (gains) with the swap (= (b-a) (d-c)]. (B) Compute the net gain to each company with the swap. (C) What % rate of payment does Company X pay to BOA under the swap? (D) What % rate of payment does Company Y receive from BOA under the swap? (E) What is the net effect of the swap to each company