Company X and Company Y have been offered the following rates

	Fixed Rate	Floating Rate
Company X	3.5%	3- month LIBOR + 10bps
Company Y	4.5%	3- month LIBOR + 30 bps

Suppose that company X borrows fixed and company y borrows floating. If they enter into a swap with each other where the apparent benefits are shared equally, what is company X's effective borrowing rate?

A. 3.1%

B. 3.3%

C. 3 month LIBOR - 10 bp

D. 3 Month LIBOR - 30 bp