Ry Gears) Bid Offer Swap rate 6.03 6.21 6.35 6.06 6.24 6.39 A47-6.51 6.68 6.87 6.045 6.225 6.370 6.490 6.665 6850 6.65 6.83 10 The table above shows the interest rate s following questions using data from the table above. wap rates quoted by Goldman Sachs today. Answer the (a) Currently Maxtor has an investment that will last for another 3 years. Under this 0.75% fixed interest per annum. Because arrangement Maxtor receives LIBOR Maxtor's treasurer believes that the rates would go down over this period, she decides to enter a swap with Goldman Sachs to transform this floating rate investment into a fixed rate investment. Design an interest rate swap between Maxtor and Goldman Sachs. Show the swap in the diagram indicating the flow of payments by arrows and interest rates exchanged. (10 ps) 64a1 (b) Calculate the effective rate of retum received by Maxtor after the swap in part a is entered. (5 pts) the next 5 years, would Maxtor benefit from the swap? Calculate Maxtor's annual gain (or loss) in percent relative to situation without the swap (5 pts) (c) If tomorrow the LIBOR rate becomes equal to 6% per annum and stays at that level for