. Q3. Company A and company B, each, need a $20Million, 5-year loan with annual payments. Both face the following rates: FIXED FLOATNIG A 5% LIBOR + .1% B 6.4% LIBOR + .6% A requires a floating rate loan and B requires a fixed rate loan. Design an indirect swap that is equally attractive to A and B and SD makes .1% (10 basis points) Q.4 The swap in Q3 is for 5 years with annual payments. Assume that during these 5 years LIBOR turned out to be: 4%, 5%, 6%, 7% and 8%. Show the annual cash flows to A, B and SD during the 5 year tenor. . Q3. Company A and company B, each, need a $20Million, 5-year loan with annual payments. Both face the following rates: FIXED FLOATNIG A 5% LIBOR + .1% B 6.4% LIBOR + .6% A requires a floating rate loan and B requires a fixed rate loan. Design an indirect swap that is equally attractive to A and B and SD makes .1% (10 basis points) Q.4 The swap in Q3 is for 5 years with annual payments. Assume that during these 5 years LIBOR turned out to be: 4%, 5%, 6%, 7% and 8%. Show the annual cash flows to A, B and SD during the 5 year tenor