Lets assume Vukile Property Fund Limited wants to borrow at floating rate and Oryx Properties Limited wants to borrow at fixed rate of interest. The two companies have been offered the following rates: Company Name Fixed Rate Floating Rate Vukile Property Fund Limited 7% 12 Months LIBOR+2% Oryx Properties Limited 9.5% 12 Months LIBOR+3.5% The gain from the swap will be equally distributed to the two companies. First National Bank agrees to facilitate the swap for a fee of 25 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 Portfolio Manager? Total Marks of Q5: 20