The below table summarises the borrowing costs confronting two companies A and B.
|Bond Market Yields|
|Fixed Yield to Maturity (%pa)||Floating Yield (%pa)|
|Firm A||3||L - 0.4|
|Firm B||5||L + 1|
Firm A wishes to borrow at a floating rate and Firm B wishes to borrow at a fixed rate. Design a non-intermediated swap that benefits firm A only. What will be the swap rate?