Abelmar Company, Inc. has $$1,000,000,$ and wishes to swap for $180,000,000$ with Ballentine Company for a year. Interest rate is $15\%$ for dollars; $10\%$ for yen.

In the previous transaction between Abelmar and Ballentine, what is the breakeven exchange rate?

Given the following LIBOR over $5$ years:

$1$a$.$Year $1$: $8\mathrm{.}0\%$

$1$b$.$Year $2$: $7\mathrm{.}0\%$

$1$c$.$Year $3$: $5\mathrm{.}5\%$

$1$d$.$Year $4$: $9\mathrm{.}0\%$

$1$e$.$Year $5$: $10\mathrm{.}0\%$

$2.$ If Sierra Company has a variable rate loan for an amount of $ $50$ million and Tango Company has a similar loan with a principle of $$50$ million, but a fixed interest rate of $9\mathrm{.}5\%,$ if the variable loan interest charged to Sierra Company is as follows: Year $1-8\mathrm{.}5\%$; Year $2-7\mathrm{.}5\%$; Year $3-6\mathrm{.}0\%$; Year $4-9\mathrm{.}5\%$; and Year $5-10\mathrm{.}5\%,$ then what will the total net payment made from one party to the other be in this interest rate swap?

$2$a$.$Which party will be making the net payment when the five$-$year total transaction is complete?

$2$b$.$what is the amount?