Question: consider 5-year fixed-for-fixed currency swap agreement between Shell and BP. Under the contract BP pays a fixed rate of interest of 5% in sterling and

consider 5-year fixed-for-fixed currency swap agreement between Shell and BP. Under the contract BP pays a fixed rate of interest of 5% in sterling and receives a fixed rate of interest of 4% in dollars from BP. Interest rate payments are made once a year and principal amounts of $15 million and 10 million. which of the following is FALSE?

A. at outset, Shell pays $15 million and receives 10 million

B. each year Shell receives $0.6 million and pays 0.5 million

C. each year BP receives $0.5 million and pays 0.6 million

D. at the end, Shell pays $10 million and receives 15 million

E. last year Shell receives 10.70 million and pays $15.60 million

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