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Company A requires a floating rate loan and Company C requires a fixed rate loan....

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Company A requires a floating rate loan and Company C requires a fixed rate loan. Company A has been offered a fixed rate loan at 4.4% and a floating rate loan at LIBOR + 0.3%. Company C has been offered a fixed rate loan at 5.8% and a floating rate loan at LIBOR + 1%. They enter into a swap using a bank as an intermediary; the bank takes a net of 30 basis points; this charge is shared equally by the companies. The swap arrangements are equally beneficial to both companies. The overall rate paid by Company A is then LIBOR + %. The net rate paid by Company C to the bank is % LI BOR

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