X took out a floating rate loan of 100 million euros, maturing on 15/03/2017, at the EURIBOR rate of 200 basis points (if the EURIBOR 3 months found is -0.270%, the rate due is 1.73%). On 15/03/2016, X decided to enter as a "buyer" in a 1-year vanilla rate swap starting on 15/03/2016 (X pays the fixed rate against EURIBOR 3 months). The notional swap is 100 million euros. In the swap as in the loan, all payments are quarterly, term expired (so at the end of the quarter), the reference rate is the EURIBOR 3 months, on the exact basis/360.

Date EURIBOR 3 months in and forward on 15/03/2016 EURIBOR 3 months found on each date

15/03/2016 -0,270 % -0,270 %

15/06/2016 -0,275 % -0,262 %

15/09/2016 -0,290 % -0,301 %

15/12/2016 -0,295 % -0,316 %

NB: Rates are annualized, valid for the quarter beginning on the specified date.

(1) Determine the swap rate.

(2) Calculate X's cash flows on the loan and in the swap, and comment.