Gilead had amassed a strong balance sheet due to immunology related drugs such as Truvada and Remdesivir, which have made investors optimistic about it's prospects. It has strong access to fixed income markets and can borrowfixed rate debt at 3.08 and floating rate debt at LIBOR + 0.98.

By contrast, Hilton Hotels has seen a significnat drop in revenue.It can borrow at a fixed interest rate of 8.28 and a floating rate of LIBOR + 1.44.

Suppose Hilton needs fixed rate debt due to its financial situation, and Gilead is willing to lend in the floating rate market. Suppose also theyinto an interest rate swap and agree to split the savings equally. How much would Hilton pay for the fixed rate funds?