Company A and Company B have been quoted the following rates:

Company A fixed 6.80% or floating LIBOR+50 basis points

Company B fixed 7.25% or floating LIBOR+125 basis points

a. Design a swap that will produce a net gain of 15 basis points per annum for each of the two companies.

b. Design a swap that will produce a net gain of 10 basis points per annum for each of the two companies and a profit of 10 basis points for a swap dealer acting as intermediary.

**please draw and explain diagram**