Companies P and Q have been offered the following rates per annum on a $85 million four-year loan: Fixed Rate Variable Rate Company P Company Q 10% 15% LIBOR + 1.5% LIBOR + 3-5% Company P requires a floating-rate loan; Company Q requires a fixed-rate loan. A broker will charge 1.5% per annum in a swap between P & Q. (a) Calculate net gain from swap for each company. (b) What rates of interest will P and Q end up paying after the swap and how? (c) Diagrammatically present the swap in a figure. (5 points) Companies P and Q have been offered the following rates per annum on a $85 million four-year loan: Fixed Rate Variable Rate Company P Company Q 10% 15% LIBOR + 1.5% LIBOR + 3-5% Company P requires a floating-rate loan; Company Q requires a fixed-rate loan. A broker will charge 1.5% per annum in a swap between P & Q. (a) Calculate net gain from swap for each company. (b) What rates of interest will P and Q end up paying after the swap and how? (c) Diagrammatically present the swap in a figure. (5 points)