4 pts Question 15 Company X wants to borrow $10,000,000 floating for 5 years: company Y wants to borrow $10.000,000 fxxed for 5 years. Their external borrowing opportunities are shown below: Floating-Rate Borrowing Cost Fixed-Rate Borrowing Cost Company LIBOR 10% 12 % LIBOR+1.5% A swap bank proposes the following interest only swap: Y will pay the swap bank annual payments on $10,000,000 with a fixed rate of 10 % In exchange the swap bank will pay to company Y interest payments on $10,000,000 at LIBOR-0.15 % . What is the value of this swap to company Y? O Company Y will save 5 basis points per year on $10,000,000 $5,000 per year Company Y will save $15,000 per year. 15 basis points per year on $10,000,000 Company Y will only break even on the deal. Company Y will save 35 basis points per year on $10,000,000 $35,000 per year