Problems

$7\mathrm{.}1$ Little Prince $($LP$)$ has $100$ million Brazilian reals $($BRL$)$ of $2-$year fixed rate debt with a bond equivalent yield of $8\mathrm{.}25$ percent compounded semiannually. LP prefers floating rate BRL debt, and the market is asking LIBOR $+100$ bps$.$ swap pricing schedule is shown below for a $2-$year fixed$-$for$-$floating coupon swap. Describe LP$\text{'}$s side of the swap.

Coupon Swap Pricing Schedule $($BRL$)$

$\backslash$table$[[$Maturity$,$Bank Pays Fixed Rate,Bank Receives Fixed Rate,Current TN Rate$],[2$ years,$2-$year TN sa $+19$bps$,2-$year TN sa $+40$bps$,7\mathrm{.}05\%$