Potato are also considering a 10-year loan to fund a medium-term UK business expansion. Having heard about interest rate swaps the following information has been gathered: Cabbage X Y Z Fixed 7.8% 8.2% 10.5% 6.1% Floating L + 1.9% L + 2.7% L+ 5% L + 0.7% Preference Fixed Fixed Floating Floating The fee for having the swap agreed is 0.25%. Cabbage can only perform a swap with one of X, Y or Z. (c) Which potential counter-party would produce the lowest preferred rate for Cabbage (X, Y or Z)? What are the terms of that swap? (HINT: you may want to work out whether a swap is feasible for X, Y and Z and how much benefit is created for each alternative)