(1) Answer the NPV from the Interest Swap deal in the reference on below.

*Reference

Pay?7% at t=1, 4.9% at t=2

Receive?6% at t=1 and t=2, respectively

Assumed principal amount: \10billlion, Only the interest amounts are swapped. Discount rate: 6% p.a.

Consider the cash flow from the above interest swap deal. Calculate the net profit (or loss) on a present value basis from the deal.

= Calculate the DCF, then answer the NPV from the deal.