Please help with the below question :
1) Swap: Companies A & B have been offered the following rates per annum on a €20 million 10-year loan from their banks:
Fixed Rate Floating Rate
Company A 4% Libor +500 bps
Company B 6% Libor + 600 bps
Company A requires a floating rate loan; Company B requires a fixed-rate loan. Design a swap that will net a bank as intermediary 0.2% per annum and that will appear equally attractive to both companies (the gain by engaging in the swap will be split evenly between the 2 companies).