Business, 06.07.2021 16:50 jazare05

Ganado Corporation entered into a three-year cross currency interest rate swap to receive U. S. dollars and pay Swiss francs. Ganado, however, decided to unwind the swap after one year â€“ thereby having two years left on the settlement costs of unwinding the swap after one year. Repeat the calculations for unwinding, but assume that the following rates now apply: Assumptions Values Swap Rates 3 year bid 3 year ask
Notional principal $9,000,000 Original: U. S. dollar 5.56% 5.59%
Spot exchange rate, SFr/$ 1.5 Original: Swiss franc 1.93% 2.01%
Spot exchange rate, SFr/$ 1.556
New fixed U. S. dollar interest 5.2%
New fixed Swiss franc interest 2.5%

a. In the first year of theâ€‹ swap, Ganado will receive $
b. In the second year of theâ€‹ swap, Ganado will receive $
c. In the third year of theâ€‹ swap, Ganado will receive $

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