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need ASAP. please answer the following with formula/explanation. will upvote once answered! thank you in advance much appreciate it! (4) Firm IBM is in a

need ASAP. please answer the following with formula/explanation. will upvote once answered! thank you in advance much appreciate it! image text in transcribed
(4) Firm IBM is in a newly-initiated one-year swap where at the end of the year it pays 10%/ year in sterling and receives 8% year in dollar, plus the exchange or principle at the beginning and end of the year. The principal amounts in the two currencies are $15 million and 10 million pounds. The current exchange rate is $1.5 per pound. The one-year simple interest rates are 5% for US and 8% for UK. (a) What is the value of the swap to IBM? (b) Can you change the principal amounts to make this swap have an initial value zero

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