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Companies A and B have been offered the following rates. Company A requires a floating-rate loan. Company B requires a fixed rate loan. Design a

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Companies A and B have been offered the following rates. Company A requires a floating-rate loan. Company B requires a fixed rate loan. Design a swap that will appear equally attractive to both parties (split any gains from the swap right down the middle). Fixed Rate Floating Rate 4.3% LIBOR + 0.3% Company A Company B 6.8% LIBOR + 0.9% X% A B LIBOR A diagram of the swap is shown above. What is the value of X (the fixed payment that company B makes to Company A) in the swap you designed? (Enter 11.51% as 0.1151. Required precision: 0.0001 +/- 0.0001)

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