A trader arranged for an equity swap with a dealer. The swap is on a notional principal of R100,000 with semi-annual payments. The trader agrees to pay the dealer the return on the small-cap share index, and the dealer agrees to pay the trader a fixed rate of 6.55 percent. The small-cap index starts off at R1,602.40 and six months later it is at R1,520.10. Calculate the first payment for both parties and under the assumption of netting, determine the net payment and which party makes the payment.