Health Services LTD (HS) and Bonjour inc (BI) both need to borrow $1 million to purchase new computer systems. HS can borrow fixed interest rate funds at 8 percent or variable rate funds at LIBOR plus 0.5% in the debt market. Identify the best swap agreement between HS and BI and label the graph accordingly, given they both are sharing the cost of borrowing equally and there is no inermediary.

BI incurs higher costs of borrowing which are a fixed rate of 11 percent and a variable rate of LIBOR plus 2%