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7. Companies X and Y have been offered the following rates per annum on a $5 million 10-year investment: Fixed Rate Floating Rate Company X

7. Companies X and Y have been offered the following rates per annum on a $5 million 10-year investment:

	Fixed Rate	Floating Rate
Company X	8.0%	LIBOR
Company Y	8.8%	LIBOR

Company X requires a fixed-rate investment; company Y requires a floating-rate investment. Design a swap (draw a chart) that will net a bank, acting as intermediary, 0.2% per annum and will appear equally attractive to X and Y.

Please show a swap chart!!!!!

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