Harry borrowed $10,000 for two years at a variable interest rate. Harry will make an interest payment to the lender at the end of each year and also repays $10,000 at the end of 22 years. The one-year spot rate is 5% and the 22-year spot rate is 4%. Harry decided to enter into a two-year interest rate swap with annual settlement periods under which he will swap the variable interest rate for a fixed interest rate.

Determine the amount that Harry should pay the swap counterparty at the end of the first year and the amount he should receive from the swap counterparty at that time under this arrangement