2. Cross-Currency Swap (s points) Todly is December 14,2023 , The annualized Brazilian real (BRL, interest rate is 11% for six momtus. while the anmulired USD interest rate is 3% for six months. Festiva Co., a U.S. firm, entered into a cross-eurreney swap with a swap dealer, where Festiva pays 4% semi-annually in USD and receives 12% semi-amually in BRL. The principals in the two currencies are USD 8 million and BRL.40 million. The swap will last for another two years. The BRLUSD exchange rate is 0.2 . For simplicity, assume the term strueture in Brazil and in the U.S. is flat. Questions: a. Draw a diagram showing the semi-annat swap cash flows (in BRL. and in USD). (2 points) b. Value this cross-currency swap in USD for Festiva Co. (3 points) c. Suppose the USD appreciates against the BRL. Without doing any calculations, does the value of the swap increase or decrease for Festiva Co.? (1 point)