q1: SWAPS
Assuming 5 years ago (starting March 1st 2017) you entered into a 10 million AUD annual payments total return equity swap with receive ASX returns (in AUD) / pay HANG SENG returns (in AUD).
Calculate the following,
–The cash flow received or paid in 2018, 2019, 2020 & 2021, & 2022 ($ in Millions)
–What is the current value of the swap?
–Explain your answer for the current value . (Qualitative)
