M Inc. (Company X) desires to borrow $45,000,000 floating for 5 years; company N Inc (Company Y) wants to borrow $45,000,000 fixed for 5 years. Their external borrowing opportunities are shown here: Floating-Rate Fixed-Rate Borrowing Cost Borrowing Cost 10% LIBOR Company X Company Y 12% LIBOR + 1.5% A swap bank proposes the following interest only swap: Y will pay the swap bank annual payments on $10,000,000 with a fixed rate of rate of 9.90 percent. In exchange the swap bank will pay to company Y interest payments on $10,000,000 at LIBOR 0.15 percent; What is the value of this swap to company Y? Divide your answer by 1.1599 M Inc. (Company X) desires to borrow $45,000,000 floating for 5 years; company N Inc (Company Y) wants to borrow $45,000,000 fixed for 5 years. Their external borrowing opportunities are shown here: Floating-Rate Fixed-Rate Borrowing Cost Borrowing Cost 10% LIBOR Company X Company Y 12% LIBOR + 1.5% A swap bank proposes the following interest only swap: Y will pay the swap bank annual payments on $10,000,000 with a fixed rate of rate of 9.90 percent. In exchange the swap bank will pay to company Y interest payments on $10,000,000 at LIBOR 0.15 percent; What is the value of this swap to company Y? Divide your answer by 1.1599