A corporation intends to raise $500 MM in debt. The Treasurer is told by the banker that it could sell five-year paper at a fixed coupon at T5 + 96 bps or a 5-year floater at 3-month LIBOR + 86 bps. The swap market is quoted as follows: Maturity Treasury Yield Swap Spread Year 1 5.00% 26 The swap dealer will price the swap at mid-market Year 2 5.11% 28 yields and a spread of 2 bps. Year 3 5.30% 32 How should the Treasurer proceed. Year 4 5.47% 33 Year 5 5.60% 34 Year 7 5.70% 36 Year 10 5.90% 39 Year 30 6.20% 42