MacLaren is the receiver of the equity index and the payer of the 4.5% fixed rate, which in a semi-annual basis reduces to 2.25%. The value of the fixed side is 1.013, which I agree with Schweser. I disagree with the return on the equity side. This is NOT how Stalla teaches the material. If the index increased from 5000 to 5478, as the equity receiver your return is (5478/5000 = 1.0956). This is what you’re entitled to receive on the settlement date. So if you’re receiving 1.0956 and paying out 1.013, you have positive value and are entitled to a payment from the fixed rate receiver. But Schweser’s retarded logic states the value of the notional resets to 10 million at each settlement, so the overall value to the equity receiver is negative. If this were the actual exam and you followed the logic, you would get it wrong every time.

This is the way I do equity swaps (Value_t/Value_t0 - PV of $1 at Expiry - PV of fixed side) x Notional