Q1. Suppose that Company XYZ and Company ABC enter into a ten-year swap with the following terms: Company XYZ pays Company ABC an amount equal to 3.5% per annum on a notional principal of $50 million. Company ABC pays Company XYZ an amount equal to one-year LIBOR +1.5% per annum on a notional principal of $100 million. Assume that LIBOR is 4%. a. Show the cash flows each party pays the other. b. Assume after 4 years, LIBOR increases to 5.5%, what would happen? c. Assume after 6 years LIBOR decreases to 3.5%, what would happen