Suppose the Philadelphia investor needs fixed rate funds which are available at the rate of 7.875% to be computed half yearly but it has access to cheaper floating rate funds available locally to it at LIBOR + 0.225%. The Bolivian firm investor in South America also needs floating-rate funds available to it at a six-month LIBOR flat but has access to cheaper fixed-rate funds available to it at the rate of 9.5% to be computed half yearly. Both the principal investors are identical in size on maturity and are in the same currency. Design how the interest rate swap takes place. (4 marks)