a) Company X has been offered the rates shown below. It can invest for four years at 2.8%. What floating rate can it swap this fixed rate into?

Maturity	Bid (%)	Offer (%)	Swap Rate (%)
2 years	2.55	2.58	2.565
3 years	2.97	3.00	2.985
4 years	3.15	3.19	3.170
5 years	3.26	3.30	3.280
7 years	3.40	3.44	3.420
10 years	3.48	3.52	3.500

(b) Company Y has been offered the rates shown in Table above (part a). It is confident that it will be able to invest at LIBOR minus 50 basis points for the next ten years. What fixed rate can it swap this floating rate into?