Q1. Read Merrill Lynch's proposal first. There are two sub-proposals: one with flat fixed rate (FIXED_M) and the other with swap (SYNTHETIC_M). Assume that the State of Connecticut can issue a floater at the interest rate of 55 basis points under JJK index (JJK - 0.55%). In the SYNTHETIC_M proposal, the State will issue the floater and enter interest rate swap with Merrill Lynch simultaneously. The swap says that Merrill Lynch will pay JJK index to the State and the State will pay 6.905% fixed to Merrill Lynch. What is the total interest rate that the State pays if they chose this SYNTHETIC_M structure? How much does it differ from FIXED_M proposal