Companies A and B have been offered the following rates per annum on a $30 million six-year loan:

FXED RATE FLOATNG RATE

Company A 3.0% LIBOR+0.1%

Company B 4.6% LIBOR+0.4%

Assume that company A first borrows at a fixed-rate whereas company B borrows at a floating-rate from the market at the rates presented above. Then, the two parties arrange a swap (through a financial intermediary) which transforms company As fixed-rate loan to floating-rate and company Bs floatingrate loan to fixed-rate. Design a swap so that the intermediary earns 0.1% per annum, the final cost of borrowing for company A is LIBOR 0.5% and the final cost of borrowing for company B is 4%.

Dont use excel please.