I. Company X wants to borrow $10,000,000 floating for 5 years; company Y wants to borrow $10,000,000 fixed for 5 years. Their external borrowing opportunities are shown below: Fixed-Rate Borrowing Cost 10% 12% Floating-Rate Borrowing Cost LIBOR LIBOR + 1.5% 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 LIBOR- 0.15%; in exchange the swap bank will pay to company X interest payments on $10,000,000 at a fixed rate of 9.90%. Y will pay the swap bank interest payments on $10,000,000 at a fixed rate of 10.30% and the swap bank will pay Yannual payments on $10,000,000 with the coupon rate of LIBOR - 0.15%. 10% LIBOR -15% SWAP LIBOR-159 BANK 9.90% 10.30% Y LIBOR + 12% 1. Compute the value of this swap to the swap bank? 2. Compute the value of this swap to Company X? 2. Compute the value of this swap to Company Y