Company X wants to borrow $10,000,000 for 5 years; company Y wants to borrow 5,000,000 for 5 years. The exchange rate is $2 = 1 and is not expected to change over the next 5 years. Their external borrowing opportunities are shown here: $ Borrowing Cost $ 10% $ 12% Borrowing Cost 10.5% 13% Company X Company Y A swap bank proposes the following interest only swap: X will pay the swap bank annual payments on $10,000,000 with the coupon rate of 9.80 percent; in exchange the swap bank will pay to company X interest payments on 5,000,000 at a fixed rate of 10.5 percent. Y will pay the swap bank interest payments on 5,000,000 at a fixed rate of 12.80 percent and the swap bank will pay Y annual payments on $10,000,000 with the coupon rate of 12 percent