Question: please answer asap thx! 1. (10 pts) MonkeyMass Corp. (MKM) enters into a 2-year interest rate swap with Northern European Bank. The notional principle of

please answer asap thx! please answer asap thx! 1. (10 pts) MonkeyMass Corp. (MKM) enters into

1. (10 pts) MonkeyMass Corp. (MKM) enters into a 2-year interest rate swap with Northern European Bank. The notional principle of the swap is \\( 100 \\) million. Payments will be made semiannually on the basis of \\( 180 / 360 \\) (180 days in the settlement period and 360 days per year). MKM will pay a fixed rate of \4.5 and receive floating rate Euribor plus \1. The realization of the 180-day Euribor rates are as below: Current: \3 In 6 months: \3.5 In 12 months: \4 In 18 months: \4.5 A. Determine the initial exchange of cash that occurs at the start of the swap. B. Determine the semiannual payments for the first year (first half, second half) C. Determine the final exchange of cash that occurs at the end of the swap

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