Intel borrowed a floating-rate loan at LIBOR and Microsoft borrowed a fixed-rate loan at 4.9% per annum. Two companies then enter into a swap contract in which Intel receives LIBOR from and pays 5% to Microsoft on the same amount of notional principal. What are the actual interest rates paid by Intel and Microsoft after they enter into the swap contract?

1. 5% and LIBOR-0.1%
2. LIBOR and 4.9%
3. 4.9% and LIBOR
4. LIBOR+0.1% and 5%

Please explain