(a) A company based in the United Kingdom has an Italian subsidiary. The subsidiary generates EUR25,000,000 a year, received in equivalent semiannual installments of EUR12,500,000. The British company) Wishes to convert the euro cash flows to pounds twice a year. It plans to engage in a currency swap in order to lock in the exchange rate at which it can convert the euros to pounds. The current exchange rate is EUR1.5/GBP. The fixed rate on a plain vanilla currency swap in pounds is 7.5 percent per year, and the fixed rate on a plain vanilla currency swap in euros is 6.5 percent per year. (i) Determine the notional principals in euros and pounds for a swap with semiannual payments that will help achieve the objective. (4 marks) (ii) Determine the semi-annual cash flows from this swap. (4 marks)