Companies A and B receive the following offer on a $$20$ million, $5-$year loan.

Company A wants a floating rate, while B is interested in paying a fixed rate.

Design the interest rate swaps necessary for an intermediary that wants $10bp$ to make a swap

with each company in a way that both companies can benefit equally. Assume, as part of the

swap design, that the intermediary ends up receiving and paying the Libor rate $($receives L from

A$,$ pays L to B$).$

Find the exact cash flow amounts in every direction, and the savings $($in dollars$).$