Bonus Inc. needs to borrow $10 million for 5 years. The firms CFO is afraid that interest rates may rise in the coming years. Malus Inc. needs to borrow $10 million for 5 years. The firms CFO thinks that interest rates may decline in the coming years.

Bonus and Malus could each borrow at the following rates:

	Fixed rate		Variable rate
Bonus Inc.	4.20%	or	Prime + 0.20%
Malus inc.	4.70%	or	Prime + 0.90%

Based on the above information, ABC Bank designed a 5 years interest rate swap (notional amount equal to $10 million) that will allow each firm to save 10 basis points (0.10%). For simplification purpose, ignore bank fees.

Malus will borrow $10m for 5 years and then, enter into the interest rate swap designed by ABC Bank. List/calculate all the expected interest inflows (in %) and outflows (in %) related to Malus initial loan and interest rate swap. Calculations needed. Show your work. Use two decimals (ex. 1.25%)