Company X and Company Y have been offered for the following rates per annum on a RM30 million 5-year loan.

Company X

Fixed rate: 12.5%

Floating rate: 3-month KLIBOR+2%

Preferred loan: Fixed rate

Company Y

Fixed rate: 12.5%

Floating rate: 3-month KLIBOR + 2.75%

Preferred loan: Floating rate

You work for KL Bank, and thinks that the quoted rate are arbitrageable by means of an interest rate swap. Design a fixed-for-floating interest rate swap. Show the percentage gain to each party, assuming that the mispricing is split equally among three parties.