Bolt Industry is facing increased competition and wants to borrow $10 million in cash to protect against future revenue shortfalls. Currently, long-term AA rates are 10%. Bolt can borrow at 10.5% given its credit rating. The company is expecting interest rates to fall over the next few years, so it would prefer to borrow at short-term rates and refinance after rates drop (the applicable short rate would be the six-month interest rate LIBOR). However, Bolts management is afraid that its credit rating may deteriorate as competition intensifies, which may greatly increase the spread the firm must pay on a new loan. How can Bolt benefit from declining interest rates without worrying about changes in its credit rating? What would be the net borrowing cost if Bolt enters into a swap?