Consider a $100 million equity swap with semiannual payments. When the swap is established, the underlying stock is at 1,215.52.
One party pays a fixed rate of 5.5 percent based on the assumption of 30 days per month and 360 days in a year.
If the stock index is at 1,275.89 on the first payment date, calculate the net swap payment, indicating which party pays it.