5. Companies A and B have entered a five year currency swap between US dollars and German Mark Initiated at Feb 2011, paid annually. The principal of US dollars is $1,000,000, at interest rate of 5%. Suppose that the exchange rate is 1.72 German Mark per US dollar: a. What is the principal of German Mark? b. When do they exchange the principals? Suppose the interest rate at Germany is 3.6%, please complete the following fee schedule. Date Dollar Cash Flows German Mark cash flow (millions) (millions) Feb 1, 2011 Feb 1, 2012 Feb 1, 2013 Feb 1, 2014 Feb 1, 2015 Feb 1, 2016