'A French firm enters into a two-year interest rate swap in euros on April 1, 2005. The swap is based on a principal of 80 million, and the firm will receive 7% fixed and pay six-month Euribor. Swap payments are semiannual. The 7% fixed rate is quoted as an annual rate using the European method, so the implied semiannual coupon is 3.44% [since (1.0344)2 = 1.07]. Two years later, the swap is finally settled, and the following Euribor rates have been observed: . Apr. 1, 2005 Oct. 1, 2005 Apr. 1, 2006 Oct. 1, 2006 Apr. 1, 2007 5.5% 6.5% 7.5% 8% 6.5% (a) What have the swap payments or receipts for the firm been on each swap payment date? (b) The same French firm also entered another two-year interest rate swap in euros on April 1, 2005. The swap is based on a principal of 80 million, and the firm contracted to receive 7% fixed and pay six-month Euribor. On this swap, the payments are annual. Hence, the two successive six-month Euribor are compounded. Assuming that the Euribor rates given in the previous problem (a) have been observed, what have the two annual swap payments been? 'A French firm enters into a two-year interest rate swap in euros on April 1, 2005. The swap is based on a principal of 80 million, and the firm will receive 7% fixed and pay six-month Euribor. Swap payments are semiannual. The 7% fixed rate is quoted as an annual rate using the European method, so the implied semiannual coupon is 3.44% [since (1.0344)2 = 1.07]. Two years later, the swap is finally settled, and the following Euribor rates have been observed: . Apr. 1, 2005 Oct. 1, 2005 Apr. 1, 2006 Oct. 1, 2006 Apr. 1, 2007 5.5% 6.5% 7.5% 8% 6.5% (a) What have the swap payments or receipts for the firm been on each swap payment date? (b) The same French firm also entered another two-year interest rate swap in euros on April 1, 2005. The swap is based on a principal of 80 million, and the firm contracted to receive 7% fixed and pay six-month Euribor. On this swap, the payments are annual. Hence, the two successive six-month Euribor are compounded. Assuming that the Euribor rates given in the previous problem (a) have been observed, what have the two annual swap payments been