Company X and Company Y have been offered the following rates

	Fixed Rate	Floating Rate
Company X	4.5%	LIBOR + 10bps
Company Y	6%	LIBOR + 40 bps

Suppose that Company X wants to borrow floating and company Y wants to borrow fixed. A swap deal will take place between the two company where an investment bank Z will act as a financial intermediary. In this action, Z aims to get a commission of 30 bps. In these circumstances,

1. Design a swap deal where the apparent benefits are shared equally.
2. What are Xs and Ys effective borrowing rates after this swap deal?
3. Explain the risk carried by the financial intermediary Z in this deal.