Consider Company X and Company Y; each firm wants to borrow 100 million for 3 years. Company X wants to finance an interest-rate-sensitive asset and therefore wants to borrow at a floating rate. Company Y wants to finance an interest-rate-insensitive asset and thus wants to borrow at a fixed rate. Company X can borrow at fixed-rate of 10.20% or at a floating of LIBOR. Company Y can borrow at a fixed-rate of 11.20% or at a floating-rate of LIBOR +0.4%. The swap bank charges 0.2% for a three-year swap (bid-ask quotes of 10.4%10.6% ). Required: a) Determine whether there is a swap opportunity for the companies by calculating the quality spread differential (QSD). (5 marks) b) Tabulate the net cash flow for each company. (10 marks)