Party A is an American company that wants to build a plant in china for 42 million CNY and party B is a Chinese company that wants to build a plant in the US for 6 million USD. Assume the rate is 7 CNY for 1 USD.

Unlike party B, party A can borrow for 3% in the American Markets for 3 years. Similarly, unlike party A, Party B can borrow for 4% in the Chinese Markets for 3 years. (assume these loans are bond issues)

Both parties agree to enter into a swap how much should Party A pay or receive in order to enter into the swap.