5. (Ch. 18) Value of a Swap. The annualized Philippine Peso (PHP) interest rate is 10% for six months, while the annualized USD interest rate is 3% for six months. Pan-Asia Co., a U.S. firm, entered into a currency swap with a swap dealer, where Pan-Asia Co. receives 2.0% semi-annually in USD and pays 7.0% semi- annually in PHP. [Note: the interest rates to be represented are all annualized.] The principals in the two currencies are USD 4 million and PHP 200 million. Notional principals are exchanged at the end of the swap. The swap will last for another two years. The spot exchange rate in "USDPHP" is 50. For simplicity, assume the term structure in the Philippines and in the U.S. is flat. A. Draw a diagram showing the semi-annual swap cash flows in interest payments (in PHP and in USD). (5 points) B. Value this currency swap for Pan-Asia Co, in the value of USD. (10 points)