The following information applies to Question 6 and Question 7. Companies X and Y have been quoted the following investment rates Company X Y Question 6 Fixed 5.00% 5.08% Company X wishes to invest at the floating rate while company Y wishes to invest at the fixed rate. Swaps are arranged through a financial intermediary that requires a fee of 0.04% with the remaining benefit divided between X and Y in the ratio 1.2. Floating BBSW+0.10% BBSW+0.37% Note that the statements in the above example are not the correct answers to the question. 3 pts Determine the swap arrangements to meet the requirements of the two companies with the floating rates on the swaps adjusted to BBSW, and describe the 6 arrows that appear in the resulting diagram. For example, X pays (or receives from) the market at 2% Fl pays (or receives from) X at 3% X pays (or receives from) Fl at BBSW etc. Question 7 Suppose that the swap between Y and the financial intermediary is for 1 year, and on the notional amount of $1,000,000. Assume that the interest is exchanged every 6 months and the initial 6-month BBSW rate is 3.5%. If after 2 months the BBSW rate is 4% for all maturities, then what is the value of the swap to the financial intermediary? Edit View Insert Format Tools Table 12pt Paragraph BIUA 2-T Pr - POS 5 pts BE