(Interest rate swap problem #1, 3 of 4) 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 Floating Rate Credit Rating Borrowing Cost Borrowing Cost Company X AA 10.5% LIBOR Company Y A 12.0% LIBOR+1% Assume a swap bank is quoting five-year dollar interest rate swaps at 10.7- 10.8 percent against LIBOR flat. If Firm Y enters into this swap, what is the borrow cost of Firm Y? 10.8% 9.8% O 11.8% O 12% O LIBOR+1%