Company X requires a floating$-$rate loan; company Y requires a fixed$-$rate loan. Design a swap

that will net a bank, acting as intermediary, $20$ basis points per annum and will appear equally

attractive to $x$ and $Y.$

a$)$ Illustrate the swap with a cash flow diagram. Mark the currency and interest rate clearly.

b$)$ Determine the effective borrowing costs for $x$ and $Y.$