Company A is an AAA$-$rated firm desiring to issue five$-$year FRNs$.$ It finds that it can issue

FRNs at six$-$month CME Term SOFR $+\mathrm{.}600$ percent or at three$-$month CME Term SOFR $+\mathrm{.}600$

percent. Given its asset structure, three$-$month SOFR is the preferred index. Company B is an Arated firm that also desires to issue five$-$year FRNs$.$ It finds it can issue at six$-$month CME Term

SOFR $+1\mathrm{.}475$ percent or at three$-$month CME Term SOFR $+1\mathrm{.}100$ percent. Given its asset

structure, six$-$month SOFR is the preferred index. Assume a notional principal of $$15,000,000.$

Determine the OSD and set up a floating$-$for$-$floating rate swap where the swap bank receives $\mathrm{.}125$

percent and the two counterparties share the remaining savings equally.