Companies Alpha Plc and Bravo Plc face the following interest rates per annum on a $30 million ten-year loan:

Fixed rate:

Alpha plc 5.0%

Bravo Plc 6.4%

Floating rate:

Alpha LIBOR+0.1%

Bravo LIBOR+0.6%

Assume that Alpha Plc requires a floating rate loan and Bravo Plc requires a fixed rate loan. A financial institution is planning to arrange a swap and requires a 10-basis-point spread per annum.

Required

Show through a SWAPS Table

a) If the swap is equally attractive to Alpha and Bravo, what rates of interest will Alpha and Bravo end up paying?