Consider & 3-year (or 36 montis) currency swap in which the financial institution will receive 8% annually in $ and pay 9% fixed annually in Euros (E). The notional value of the swap is 50 million. The current spot rate is $1.10 per . a. Calculate the cash flow paid and received by the Flinancial institution at time 0. b. After 18 months, the flat term structure in both countries generates a 3 percent rate in the U.S. and a 1 percent rate in Eurozone. What is the value of $ bond underlying the swap? c. What is the present value of the net cash flow exchanged for the financial institution in the last period only ? (hint: estimate 18 month forward rate)