2. YankeeCo in the USA needs 135 million Brazilian Real (BR) to set up a new subsidiary there. Yankee Co is relatively unknown outside the USA so borrowing Real directly in Brazil would be difficult at a good rate and need a long processing time. The current exchange rate is 4.5 BR / $. At the current exchange rate, the US$ value of the 135 mill. Brazilian Real is $30 million. Yankee will issue in the U.S. $30 million of 4-year debt with semi-annual interest payments at a floating rate of LIBOR +1.5. 6-month LIBOR is presently 6.0%. Yankee is worried that the LIBOR rate will rise soon and desires locking in a fixed interest rate in a currency swap. Yankee contracts for a SWAP with Buddy Bank. In the Swap, Buddy will pay Yankee straight LIBOR every 6 months in exchange for Yankee paying fixed 6.6% annual rate semi-annually to Buddy Bank. 3pts ea. a - g Enter answers below (show amount and currency, $ or BR, on each answer): a. At initial rates, each 6 months (= 5. Yr), YankeeCo pays its US lenders the amount a b. At t=0 swap start, Buddy pays to Yankee the initial amount ......... b c. At current interest rates, every 6 months (180/360), Buddy pays Yankee d. At current interest rates, every 6 months, (180/360), Yankee pays to Buddy d e. YankeeCo each 6 months needs to come up with how much more $ besides Swap receipts to cover its US lenders' debt payments e f. The LIBOR rate for the last 6 months of the Swap rose to 7.0%. The final total closing swap payment at end t=4 from Buddy to Yankee is f g. The LIBOR rate for the last 6 months of the Swap rose to 7.0%. The final total closing swap payment at end t=4 from Yankee to Buddy is 8