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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 398 Weeks Ago, 2 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
| Ganado's Cross-Cuurency Swap: SFr for US$. 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 – 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: | ||||||||
| Â | Â | Â | Â | Â | Â | Â | Â | Â |
| Assumptions | Â | Values | Â | Swap Rates | Â | 3- year bid | Â | 3-year ask |
| Notional principal | Â | $10,000,000 | Â | Original: US dollar | 5.56% | Â | 5.59% | |
| Original spot exchange rate, SFr./$ | 1.5000 | Â | Original: Swiss franc | 1.93% | Â | 2.01% | ||
| New (1-year later) spot exchange rate, SFr./euro | 5.5560 | Â | Â | Â | Â | Â | Â | |
| New fixed US dollar interest | Â | 5.20% | Â | Â | Â | Â | Â | Â |
| New fixed Swiss franc interest | Â | 2.20% | Â | Â | Â | Â | ||
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