The Yankee Corporation would like to borrow floating-rate dollars, which it can do at LIBOR +0.5%. It can also borrow fixed rate yen at 6%. Kiso Kaido, K.K., has a strong preference for fixed yen debt, which will cost it 7.0%. Kiso Kaido, K.., could borrow floating dollars at LIBOR +10%.

Question: show the final interest cost of all of the benefit of the swap goes to Yankee Corporation and none to Kiso Kaido. (Draw a diagram and work through the matrix).