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Company X wants to borrow $10.000.000 floating for 5 years: company Y wants to borrow $10.000.000 fed for 5 years. Their external borrowing opportunities are

Company X wants to borrow $10.000.000 floating for 5 years: company Y wants to borrow $10.000.000 fed for 5 years. Their external borrowing opportunities are shown he Fixed-Rate Borrowing Cost Floating Rate Company X Company Y 10% 12% Borrowing Cost LIBOR LIBOR 1.5% A swap bank proposes the following interest only swap Y will pay the swap bank annual payments on $10,000,000 at a fixed rate of 9.90 percent. In exchange the swap bank will p O Company only break even c the deal Company will save 15 has points per year on $10.000.000-$15.000 per year O Company Twit save 5 basis points per year on $10.000.000-$5,000 per year O Company Yil 45 basis points per year on $10.000.000-$45.000 per year to company Y interest payments on $10.000.000 at LIBOR-0.15 percent What is the value of this

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