Problem 6. Company A wishes to borrow sterling at a fixed rate of interest. Company B wishes to borrow U.S. dollars at a fixed rate of interest. They have been quoted the following borrowing rates.

	sterling	dollar
company a	4.6%	2.2%
company b	5.0%	3.0%

Design a swap that will net a bank, acting as intermediary, 10 basis points per annum and that will produce a gain of 15 basis points per year for each of the two companies.