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You enter into a 3-year fixed-for-fixed currency swap, such thatthe cash-flow stream you are paying is in U.S. dollars and thecash-flow stream you are receiving is in euros. The swap contractis based on a notional principal of $1 million. The contract is anat-market swap, the swap rates are 4.13% for dollars and 2.96% foreuros, and the spot exchange rate is €1 = $1.23 $/ at origination?a. What will be your cash flows in each of the next three years?(Assume the notional principal is exchanged in four years as wellas annual payments) b. Immediately after the second annualpayment-exchange, you want to terminate the contract. At that time,1-year interest rates are 4.96% for dollars and 5.18% for euros,and the exchange rate is €1= $1.29. What should you receive (orpay) upon termination? (That is, how much is the contract nowworth?)