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If you use excel please show the formulas Companies X and Y have been offered the following rates per annum on a $5 million 10-year

image text in transcribedIf you use excel please show the formulas

Companies X and Y have been offered the following rates per annum on a $5 million 10-year investment: Company X Company Y Fixed Rate 8.0% 8.8% Floating Rate LIBOR LIBOR Company X requires a fixed-rate investment; company Y requires a floating-rate investment. A. Assuming X and Y split the gains from the swap in such a way that X gets 60% of the gains and Y gets 40% of the gains, what are the net investment rates that X and Y can get? B. If a Financial Intermediary (FI) charges 0.2% a year (split equally between X and Y), how would this affect the final rates that the two parties are receiving? C. Illustrate the swap between X and Y in the presence of a financial intermediary with the help of a diagram. Please make sure that all rates are properly labeled. Companies X and Y have been offered the following rates per annum on a $5 million 10-year investment: Company X Company Y Fixed Rate 8.0% 8.8% Floating Rate LIBOR LIBOR Company X requires a fixed-rate investment; company Y requires a floating-rate investment. A. Assuming X and Y split the gains from the swap in such a way that X gets 60% of the gains and Y gets 40% of the gains, what are the net investment rates that X and Y can get? B. If a Financial Intermediary (FI) charges 0.2% a year (split equally between X and Y), how would this affect the final rates that the two parties are receiving? C. Illustrate the swap between X and Y in the presence of a financial intermediary with the help of a diagram. Please make sure that all rates are properly labeled

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