Let's assume Letshego ML wants to borrow at floating rate and Postfin wants to borrow at fixed rate of interest. The two companies have been offered the following rates: Company Name Letshego ML Postfin Fixed Rate 12% 15.5% Floating Rate 6 Months LIBOR+3% 6 Months LIBOR+4.5% The gain from the swap will be equally distributed to the two companies. Bank Windhoek agrees to facilitate the swap for a fee of 30 basis points. What swap can be designed? What is the benefit for each company? What are swaps and how can they be used practically by a Derivatives Portfolio Manager?