Set a 4 year currency swap for companies A and B. Company B wants to issue debt in Germany, in Euros, while company A wants to issue debt in the U.S., in Dollars. The interest rates they can get are:

	Company A	Company B
Interest in EUR	1%	3%
Interest in USD	2%	3%

The yield curves for the U.S. and Germany are presented in the following table:

year	Germany rates (% per year)	U.S. rates (% per year)
1	0.67	0.65
2	0.63	0.83
3	0.58	0.99
4	0.50	1.14

The exchange rate at the beginning is 1.1100 [USD/EUR], rebalance the swap is the exchange rate at the end of year 2 is 1.1438 [USD/EUR]. Use a nominal of 1,000 [EUR]

PLEASE PROVIDE:

Present value tables for all the years before and after the change in exchange rate. Payments to be made to balance the swap