Company X and Y have been offered the following borrowing interest rates per annum on a $5 million loan Company X Fixed Rate 3 0 Floating Rate Libor Company Y Fixed Rare 4 3 Libor 0 15 Company X requires a floating rate loan Company Y requires a fixed rate loan Provide at least two reasons for the savings that have been generated through the swap

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Company X and Y have been offered the following borrowing interest rates per annum on a $5 million loan. Company X Fixed-Rate 3.0% Floating Rate

Company X and Y have been offered the following borrowing interest rates per annum on a $5 million loan.

Company X	Fixed-Rate 3.0%	Floating Rate Libor
Company Y	Fixed-Rare 4.3%	Libor +0.15%

Company X requires a floating rate loan; Company Y requires a fixed-rate loan.

Provide at least two reasons for the savings that have been generated through the swap

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