This is a problem from a study guid that I am working through. I am having some trouble with this question and would appreciate any help or guidance on methodology in order to solve this.

Company A wants to borrow in Euros while company B wants to borrow in Pounds.

Company A Company B

GBP 5 % 8 %

EUR 4 % 6 %

Set a 4 year currency swap for these companies if the gains are to be equally divided between the companies and the swap bank does not charge commission. Calculate the cash flows for a 1,000 [GBP] notional amount if the spot rate is 1.3 [EUR/GBP] and the cash to be exchanged to balance the swap if the exchange rate moves to 1.1 [EUR/GBP]. What happens to the swap bank if the EUR appreciates with respect to the GBP?