Question: How much does each company save by engaging in interest rate swaps if we assume each company shares the benefits evenly with their counterparty. begin{tabular}{|l|l|l|}

How much does each company save by engaging in interest rate swaps if we assume each company shares the benefits evenly with their counterparty.
\begin{tabular}{|l|l|l|} \hline & Company A (Wants Fixed) & Company B (Wants Float) \\ \hline Fixed & 8% & 7% \\ \hline Float & Prime +4% & Prime +5% \\ \hline Amount & $1,000,000 & $500,000 \\ \hline \end{tabular}
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