Two companies have investments which pay the following rates of interest:

Firm A have Fixed 6% and Float: LIBOR

Firm B have Fixed 8% and Float: LIBOR+0.5%

Assume A prefers a fixed rate and B prefers a floating rate. If an intermediary charges both parties equally a 0.1% fee and any benefits are spread equally between Firm A and Firm B. If an intermediary charges both parties equally a 0.1% fee and any benefits are spread equally between Firm A and Firm B, what rates could A and B receive on their preferred interest rate? Show all working.