A plain vanilla foreign currency swap has just been arranged between Muscat Electric Company and British Petroleum. Interest will be calculated on an annual basis. Muscat Electric Company needs a Euro...

Extracted text: A plain vanilla foreign currency swap has just been arranged between Muscat Electric Company and British Petroleum. Interest will be calculated on an annual basis. Muscat Electric Company needs a Euro loan to buy equipment for its new project. The loan is required for 5 years and amount is 15 million Euros. Muscat Electric is interested in fixed rate loan. Muscat electric agreed to pay 5% per year British Petroleum operates in Oman. BP needs a 5 year 15 million Euro Loan. BP wants floating rate funds. BP agreed to pay LIBOR+1%. Calculate the exchange of cash flows between the two parties In year 2 Libor Rate Observed Year Muscat Electric British Petroleum Outflows Outflows End of year 0 5% End of year 1 6% End of year 2 7% AAA BBB Only year 2 answers are requiired What numbers will you write in Box AAA and Box BBB