Greenland Company and Redland Company have been offered the following interest rates on a $30 million five-year loan by their bank:

	Fixed rate	Floating rate
Greenland	7.1%	LIBOR + 0.6%
Redland	5.8%	LIBOR + 0.2%

Greenland wants a fixed rate loan, while Redland wants a floating-rate loan. The bank will take a commission of 0.4%.

What should the companies do?

Check all that apply:

Greenland should borrow at a floating rate.

Redland should pay fixed and receive floating on a swap.

Redland should borrow at a floating rate.

Greenland should pay fixed and receive floating on a swap

What swap rate (fixed rate) is equally attractive to both parties?