Suppose a British company enters into a currency swap in which the counterparty pays a fixed rate

Question:

Suppose a British company enters into a currency swap in which the counterparty pays a fixed rate of 6.5 percent in dollars and the British company pays a fixed rate of 5.5 percent in pounds. The notional principals are £25 million and SI 1.25 million. The spot is $1-65 per pound. Payments are made annually, and the parties have no immediate need for each other's currency.
a. Calculate the initial exchange of payments that takes place at the beginning of the swap.
b. Indie ate how to calculate the annual payments.
c. Describe a scenario in which the British company might wish to enter into this currency swap.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...