Companies A and B have been offered the following rates per annum on a $20 million five-year loan:

Fixed Rate Floating Rate

Company A 6.0% LIBOR+0.1%

Company B 7.5% LIBOR+0.7%

Design a swap that will net a bank, acting as intermediary, 0.1% per annum and that will appear equally attractive to both companies.

Open ended question.