Company AAA ( higher rated, more creditworthy) and company BBB ( lower rated) have offered the following rates per annum on a $10million 4 year loan. Fixed rate Floating rate AAA 6% LIBOR + 0.4% BBB 7.8% LIBOR + 0.9% In order to hedge their interest rate risk, company AAA requires a floating rate loan, and BBB requires a fixed rate loan. Design a swap (indicate the net interest rates paid by each party with the swap arrangement) that is equally attractive to both companies, after considering a bank charges a fee of 0.3% per annum for acting as an intermediary in the swap arrangement.