a xed and oating rate payor. Their position is summarized as follows: Swap 1: Citibank is Fixed Rate Payor Swap 2: Citibank is Floating Rate Payor Notional Principal = $500 million Notional Principal = $500 million Maturity = 5 years Maturity = 4 years Pay 8.5% xed annual coupon(semiannual payments) Receive 8.55% fixed annual coupon (semiannual payments) Receive LIBOR; reset semiannual Pay LIBOR; reset semiannual Assume that the yield curve is currently at in the 3 to 7 year maturity range. a. Draw a diagram that summarizes their position, and briey explain the benet they get from participating in this market as an intermediary. b. Precisely describe their exposure to interest rate risk. That is, if Citibank carries this position overnight, do they lose money if interest rates were to rise or if interest rates were to fall? Explain. c. Citibank can use the Eurodollar futures market to hedge this exposure. Explain whether they would need to take a long or a short position in the futures market. If we call today \"time 0,\" what are the expiration dates in years (e.g., 1.6 years) of the futures contracts that they would use