At time t, company A borrows 10 million euro at an interest rate of 3.2% p.a., paid semiannually, for a period of 2 years. It then enters into a 2-year swap at an exchange rate of USD/EUR 0.85. The swap rates are 6-month USD LIBOR, and 3.5% p.a. compounded semiannually in euro. What are the payments on the loan, on the swap and on the combination of them? Assume that 6-month LIBOR (annualized) evolves as follows: t+6 3.2% t + 12 3.6% t + 18 4.0% t + 24 3.8% Use the following table to provide your answer (use +/- to indicate the direction of the CF): Loan Swap Combination t t +6 t+ 12 t + 12 t + 18 t + 24 At time t, company A borrows 10 million euro at an interest rate of 3.2% p.a., paid semiannually, for a period of 2 years. It then enters into a 2-year swap at an exchange rate of USD/EUR 0.85. The swap rates are 6-month USD LIBOR, and 3.5% p.a. compounded semiannually in euro. What are the payments on the loan, on the swap and on the combination of them? Assume that 6-month LIBOR (annualized) evolves as follows: t+6 3.2% t + 12 3.6% t + 18 4.0% t + 24 3.8% Use the following table to provide your answer (use +/- to indicate the direction of the CF): Loan Swap Combination t t +6 t+ 12 t + 12 t + 18 t + 24