Interest Rate Swap: Use the following borrowing information to structure an interest rate swap between Counterparties A and B, two large, corporate organizations. Notional Principal: $50 million Tenor of Swap: Three years Settlement: Semi-annually; Rates set in advance Counterparty A is very creditworthy, with capacities to borrow in the fixed rate market at a rate of 4.5%, and in the floating rate market at LIBOR+90. Counterparty B is fairly creditworthy, with capacities to borrow in the fixed rate market at a rate of 6.25%, and in the floating rate market at LIBOR+220 The Intermediary who arranges the swap and nets the payments charges a fee of 5 bps annually. Savings generated by the swap can be divided in any manner, but inform me of the allocation. At swap initiation, 180-day LIBOR is 1.70%. Looking into the future, assume that 180-day LIBOR will be 2.10%. A final look into the future shows that 180- day LIBOR will be 1.85% one year from now. Savings from the swap can be Your task is to draw the box and arrow diagram and calculate the all-in borrowing cost for Counterparties A and B. Also, determine the net cash flows for the first, second, and third settlements