Companies A and B face the following interest rates (adjusted for the differential impact of taxes)

	A	B
U.S. dollars (floating rate)	LIBOR + 0.5%	LIBOR + 1.0%
Canadian dollars (fixed rate)	5.0%	6.5%

Assume that A wants to borrow U.S. dollars at a floating rate of interest and B wants to borrow Canadian dollars at a fixed rate of interest. A financial institution is planning to arrange a swap and requires a 50-basis point spread. If the swap is equally attractive to A and B, what rate of interest will A and B end up paying?