01) You are a Chief Financial Officer of a UK (United Kingdom) company. There has been several strategy meetings on what to do after Brexit. The company has decided to expand its horizon towards the US (United States) market. However, the company is not known in the US market to receive sufficient credit. Therefore, as a CFO you seek other financing methods and found another US party who are seeking British pound sterling (GBP) and willing to trade their US dollars (USD). You formed a currency swap agreement that lies on 5 years with following conditions: 1* You will receive 5% on a GBP principal of 900 million every year. The rate is also equal to the interest rate in the UK. 1* You will pay 7% on a USD principal of 15 million every year. The rate is also equal to the interest rate in the US. Suppose that 15 months after the swap agreement, interest rate in the UK remain the same as 5% and US interest rates rises to 8%. [25 pts] In terms of the value of the agreement, is your company in a better position or not? Why? Show your calculations and present your argument clearly. 01) You are a Chief Financial Officer of a UK (United Kingdom) company. There has been several strategy meetings on what to do after Brexit. The company has decided to expand its horizon towards the US (United States) market. However, the company is not known in the US market to receive sufficient credit. Therefore, as a CFO you seek other financing methods and found another US party who are seeking British pound sterling (GBP) and willing to trade their US dollars (USD). You formed a currency swap agreement that lies on 5 years with following conditions: 1* You will receive 5% on a GBP principal of 900 million every year. The rate is also equal to the interest rate in the UK. 1* You will pay 7% on a USD principal of 15 million every year. The rate is also equal to the interest rate in the US. Suppose that 15 months after the swap agreement, interest rate in the UK remain the same as 5% and US interest rates rises to 8%. [25 pts] In terms of the value of the agreement, is your company in a better position or not? Why? Show your calculations and present your argument clearly