Business, 08.07.2021 21:20 jeronimo18

Ganado Corporation entered into a 3-year cross currency interest rate swap to receive U. S. dollars and pay Swiss francs. Ganado, however, decided to unwind the swap after one yearlong dash—thereby having two years left on the settlement costs of unwinding the swap after one year. Repeat the calculations forunwinding, 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/$ 1.5000 Original: Swiss franc 1.93 % 2.01 %
Spot exchange rate, SFr/$ 1.5560
New fixed U. S. dollar interest 5.20 %
New fixed Swiss franc interest 2.50%
1- The notional principal in Swiss francs is SFr
(Round to the nearest Swiss franc.)
2- In the first year of the swap, Ganado will receive $
(Round to the nearest dollar.)
3- In the second year of the swap, Ganado will receive $
(Round to the nearest dollar.)
4- In the third year of the swap, Ganado will receive $
(Round to the nearest dollar.)
5- In the first year of the swap, Ganado will pay SF
(Round to the nearest Swiss franc.)
6- In the second year of the swap, Ganado will pay SFr
(Round to the nearest Swiss franc.
7- In the third year of the swap, Ganado will pay SFr
(Round to the nearest Swiss franc.)
Ganado, however, decided to unwind the swap after one yearlong dash—thereby having two years left on the settlement costs of unwinding the swap after one year
8- The present value of the dollar cash flow in year 2 is $
(Round to the nearest dollar.)
9- The present value of the dollar cash flow in year 3 is $
(Round to the nearest dollar.)
10- The cumulative present value of the remaining dollar cash flows is $
(Round to the nearest dollar.
11- The present value of the franc cash flow in year 2 is SFr
(Round to the nearest Swiss franc.)
12- The present value of the franc cash flow in year 3 is SF
(Round to the nearest Swiss franc.)
13- The cumulative present value of the remaining franc cash flows is SFr
(Round to the nearest Swiss franc.)
14- The conversion from Swiss francs to dollars of the cash outflow is $
(Round to the nearest dollar.)
15- The settlement of the unwinding is $
(Round to the nearest dollar and select from the drop-down menus.)
This is a cash receipt by Ganado from the swap dealer.

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Ganado Corporation entered into a 3-year cross currency interest rate swap to receive U. S. dollars...

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