Company X, a low rated firm, desires a fixed rate, longterm loan. X presently has access to floating interest rate funds at a margin of 1.25% over LIBOR. Its direct borrowing cost is 11% in the fixed rate bond market. In contrast, company Y, which prefers a floating rate loan, has access to fixed rate funds in the Eurodollar bond market at 9% and floating rate funds at LIBOR + 1/4%. Suppose they split the cost savings to arrive at a deal (The interest rate savings should be the same for both parties). Provide a diagram/flow-chart of the swap contract. How much would X pay (in interest after savings) for its fixed rate funds? How much would Y pay (in interest after savings) for its floatingrate funds?