Question 1 Igor and Jacob A bank has offered to bring lgor plc and Jacob plc together in an interest rate swap agreement. Igor plc is a large company while Jacob plc is a small company. Below is a table of the fixed and floating rates at which the two companies can borrow. Required: Explain how the interest rate swap agreement will work. If the bank takes a fee of 0.5% per party and LIBOR is not expected to fall below 5%, what are the expected post-swap interest rates paid by the two companies