Britannia Assurance, Ltd (BA) enters into a 4-year currency swap on a notional principal of pound 1,000,000. BA wants to swap out of p debt and into dollar receive on) pound sterling and pay (interest on) US dollars. All interest payments are annual, and the swap curve is flat. The spot rate at the time of the swap agreement is $1.25 per pound. The swap dealer quotes the following rates: a. Circle the appropriate Bid and Ask rates in the table above. b. Calculate all cash flows paid and received by Britannia Assurance (BA) indicating the currency by Completing the following table. Place pound sterling cash flows in the pound sterling CFs row and US dollar cash flows in the US dollar CFs row. Circle + for cash inflows to BA; circle for cash outflows from BA. c. Why might BA enter into such a currency swap. Circle one of the following: BA can borrow more cheaply in the pound sterling but earns US dollar revenues BA can borrow more cheaply in the US dollar but earns pound sterling revenues