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4. Companies BP and the Delta Airways have been offered the following rates p.a. on GBP 10 million and USD 13.5 million 5year loans. The

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4. Companies BP and the Delta Airways have been offered the following rates p.a. on GBP 10 million and USD 13.5 million 5year loans. The USD/GBP rate is 1.35. (1.35 USD per unit of GBP) USD GBP BP 4% 2% Delta 5% 4.5% BP needs USD borrowing and Delta Airways needs GBP borrowing. A swap institution arranges a swap agreement and takes 30 bps on the swap transaction and the remaining benefits of swap are shared equally by the parties. Show the swap cashflows

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