Assume that X (needs to borrow fixed) is offered 4% fixed rate and LIBOR + 1.5% float, while Y (needs to borrow float) is offered 6.25% fixed and LIBOR +2.5% float. You need to structure a swap whereby Xbenefits 60% of the savings and Y benefits 40% of the savings of their borrowing costs (did I mention a bank? then No need for it). To solve the question, fill in the following table: X Y Issue Pay to the other Recieve Net