1. A company has 10 year floating rate debt at Libor + 50 bps. The current 10-year treasury is 4.50% and 10-year swap spreads are T +40 versus Libor. What rate can the company lock in for the 10-year debt?

2. An investor owns a 5-year fixed rate bond that yields T + 70. The swap market will receive T + 50 versus Libor. The current 5-year treasury is 5%. How can the investor use a swap to convert the interest income to a floating rate asset?