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 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], model the swap as an exchange of bonds sold at par.

ANSWER:All the typical tables with the rates and payments. Also, the amount required to balance the swap after the change in the exchange rate.