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Question 5 5 pts Companies A and B have been offered the following rates per annum on a $20 million 5-year loan, and a bank,

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Question 5 5 pts Companies A and B have been offered the following rates per annum on a $20 million 5-year loan, and a bank, acting as intermediary, will charge 0.20% per annum (20 basis points) to arrange and manage the swap, which appears equally attractive to A and B. Fixed Rate Floating Rate Company A 5.5% LIBOR + 0.20% Company B 6.5% LIBOR + 0.40% Company A requires a floating-rate loan, and company B requires a fixed-rate loan. What is the net rate the company A will pay after the swap is arranged? OLIBOR - 0.30% OLIBOR -+0.10% O LIBOR O LIBOR - 0.10%

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