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"3. Company X wants to borrow $10,000,000 floating for 5 years; company Y wants to borrow $10,000,000 fixed for 5 years. Their external borrowing opportunities are shown below:,,,A swap bank proposes the following interest only swap:??X will pay the swap bank annual payments on $10,000,000 with the coupon rate of LIBOR – 0.15%; in exchange the swap bank will pay to company X interest payments on $10,000,000 at a fixed rate of 9.90%. Y will pay the swap bank interest payments on $10,000,000 at a fixed rate of 10.30% and the swap bank will pay Y annual payments on $10,000,000 with the coupon rate of LIBOR – 0.15%.,,What is the value of this swap to the swap bank? ??,A. The swap bank will lose 40 basis points per year on $10,000,000 = $40,000 per year.?,B. The swap bank will earn 40 basis points per year on $10,000,000 = $40,000 per year.?,C. The swap bank will break even.?,D. None of the above,4. Company X wants to borrow $10,000,000 floating for 5 years; company Y wants to borrow $10,000,000 fixed for 5 years. Their external borrowing opportunities are shown below:,,A swap bank is involved and quotes the following rates five-year dollar interest rate swaps at 10.05%-10.45% against LIBOR flat. Assume both X and Y agree to the swap bank’s terms. Fill in the values for A, B, C, D, E, & F on the diagram.?,,,A. = LIBOR; B = 10.45%; C = 10.05%; D = LIBOR; E = LIBOR; F = 12%?B. A = 10%; ,B. = 10.45%; C = 10.05%; D = LIBOR; E = LIBOR; F = LIBOR + 1½%?,C. A = 10%; B = 10.45%; C = LIBOR; D = LIBOR; E = 10.05%; F = LIBOR + 1½%?,D. A = 10%; B = LIBOR; C = LIBOR; D = 10.45%; E = 10.05%; F = LIBOR + 1½%?,,I need for you to include the calculus neede to answer each question please, thank you

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