Your firm has recently issued some fixed rate debt but would prefer to re-structure the debt using an interest rate swap to a floating rate of debt because your firm believes rates will be trending down over the next several years. Listed below are the details for the existing debt and the desired floating debt.

Fixed rate debt	10 percent
swap payments	LIBOR plus 1 percent
Expected Libor rates
end of year 1	9 percent
end of year 2	8.5 percent
end of year 3	7 percent

after excecuting the interest rate swap determine the rate your firm expects to pay on its debt over the next 3 years. please show detailed work.