The Window Wipers Union (a pension sponsor) and the All-Purpose Asset Management Corporation (a money mariagement firm) entered into a four-year swap with a notional principal amount of \(\$ 150\) million with the following terms: Every year for the next four years the Window Wipers Union agrees to pay All-Purpose Asset Management the return realized on the Standard \& Poor's 500 stock index for the year minus 400 basis points and receive from All-Purpose Asset Management \(9 \%\).

a. What type of swap is this?

b. If in the first year when payments are to be exchanged, suppose that the return on the \(S \& P 500\) is 7\%. What is the amount of the payment that the two parties must make to each other?