‘Swap”

Hello Mr. John,Hope you are doing well.
I want to ask you about swap in this company.(ref ques no 37,Fitzharris,Page no. 52)
The ques says..
Today’s date is 1 august.fitzharris co plans to borrow an amount of $48m on 1 dec,to finance a major construction project,for a period of three years.Its treasury dept has decided to hedge the risk associated with borrowing ,as there is some uncertainity about how interest rate will move over the rest of this year.The current central bank base rate is 3.7%,but predictions in the media suggest that it could rise or fall by0.4%by 1 dec.Fitzharris co can currently borrow funds at floating rate of central base rate plus 50 base points.

Fitzharris co’s bank has found a possible counterparty for a swap with fitzharria co.The counterparty can borrow at an annual foating rate of base rate plus 130 points,or a fixed rate of 4.8%.Fitzharria co’s bank has quoted it a nominal fixed rate of 4.6% for it to borrow.The bank will charge a fees of 5 base points to each party individuallly to act as the intermediart of the swap.Both parties would share equally the potential gains from the swap.

In this ques i have calculated the saving so far but I am confused about how to calculate the end result,also i want to know that at what rate it will be Fitzharris’s borrowing and at what rate they will swap.I am confused. Kindly tell me the solution about every single bit.