Companies X and Y have been offered the following rates per annum on a $5 million 10-year investment: Fixed rate Company X 8.0% Company Y 8.8% Floating rate LIBOR LIBOR Company X requires a fixed-rate investment; company Y requires a floating-rate invest- ment. Design a swap that will net a bank, acting as intermediary, 0.2% per annum and will appear equally attractive to X and Y. Companies A and B face the following interest rates (adjusted for the differential impact of taxes): Company A Company B U.S. dollars (floating rate) LIBOR + 0.5% Canadian dollars (fixed rate) 5.0% LIBOR + 1.0% 6.5% Assume that A wants to borrow U.S. dollars at a floating rate of interest and B wants to borrow Canadian dollars at a fixed rate of interest. A financial institution is planning to arrange a swap and requires a 50-basis-point spread. If the swap is equally attractive to A and B, what rates of interest will A and B end up paying?