Suppose a company is paying a floating interest rate on a 7-year debt issue. The floating rate equals 6 month Libor + 120 bps (1.2%). So ever six months, the coupon due equals the 6-month Libor rate + 120 bps. If Libor goes up then its coupon payment increases and if Libor declines, then its coupon payment decreases. The company wants to swap its floating debt for fixed. The price of a 7-year floating to fixed swap is 7-year Treasury + 10 bps. That means the company would receive 6-month Libor and pay 7-year US Treasury + 10bps. The current 7-year US Treasury rate = 3.5%. Show the companys current floating debt; the swap and the resulting fixed debt after the swap.