) Use the following information to develop an interest rate swap in which both X and Y have an equal cost savings in their borrowing costs:

	X	Y
Moodys credit rating	Aa	Baa
Fixed rate borrowing cost	10.5%	12%
Floating rate borrowing cost	LIBOR	LIBOR + 1%
Wants	Float rate financing	Fixed rate financing
Assume	No swap bank is involved

To make things easier, solve the question by filling in the following table

	X	Y
Issue
Pay
Receive
Net