Is this solution right? Why should they do an interesting rate agreement like this? They are paying more in the end aren't they?? When do I know when to see it from the return perspective and when I should see it from the payign perspective??

Companies A and B have been offered the following rates per annum on a $5 million 10-year investment : Company A requires a fixed-rate investment; company B requires a floating-rate investment. Design a swap that will net a bank, acting as intermediary, 0.2% per annum and will appear equally attractive to A and B. Solution : The spread between the interest rates offered to A and B is 0.8% per annum on fixed rate investments and 0.0% per annum on floating rate investments. This means that the total apparent benefit to all parties from the swap is 0.8% per annum. Of this 0.2% per annum will go to the bank. This leaves 0.3% per annum for each of A and B. In other words, company A should be able to get a fixed-rate return of 8.3% per annum while company B should be able to get a floating-rate return LIBOR +0.3% per annum. The bank earns 0.2%, company A earns 8.3%, and company B earns LIBOR +0.3%