Company X and Y both seek funding at the lowest possible cost. Company X would prefer the flexibility of floating rate borrowing, while Company Y wants the security of fixed rate borrowing. Company X is the more credit-worthy company. With the better credit rating, Company X has lower borrowing costs in both types of borrowing. The two companies are considering a swap contract to reduce their borrowing cost. The net effect of the swap will allow Company X to borrow at floating rate and Company Y to borrow at fixed rate. Assume that Company X and Y share the cost saving equally from the swap contract. Please design a swap contract (Hint: assume C= LIBOR and show how you solve A,B, and D in the following chart) for Company X and Y. What is the NET borrowing interest rate of Company X after the swap