Part 3) Adidas AG, a German multinational, wishes to borrow U.S. dollars at a fixed rate of interest. Nike Inc., a U.S. multinational, wishes to borrow euros at a fixed rate of interest. They have been quoted the following rates per annum (adjusted for differential tax effects): Euros US Dollars Adidas 5.2% 9.6% Nike 10.0% Deutsche Bank will act as an intermediary; it requires & basis points per annum to facilitate the swap. Design a swap that will produce a gain of 16 basis points per annum for each of the two companies. 6% (Bonus Part 5% of Final Project Mark) Part 4) Microsoft, a US company, entered into a swap to hedge its foreign exchange exposure. In this currency swap, it pays 5.2% in EUR and receives 5.5% in USD (rates are APR compounded semi-annually). Payments are made every year and three payments are left. The principals in the two currencies are 75 million EUR and $250 million USD. If the EUR OIS is 4%, the USD OIS is 2.6% (both which are continuously compounded), and the term structure of these ratesi s is flat. A. What is the value of the swap to Microsoft, if the spot exchange rate of the USD is 0.8173 EUR (or 1 EUR = $1.2236 USD)? B. Without doing any calculations, how do you think your answer will change if the OIS term structure for both currencies is upward sloping