Ganado's Cross-Currency Swap: SFr for US$. Ganado Corporation entered into a 3-year cross-currency interest rate swap...
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Ganado's Cross-Currency Swap: SFr for US$. 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 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: The notional principal in Swiss francs is SFr (Round to the nearest Swiss franc.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Assumptions Notional principal Original spot rate (SFr/$) New (1-year later) spot (SFr/$) New fixed US$ interest New fixed Swiss franc interest Values Swap Rates $10,500,000 1.4500 Original: US dollar Original: Swiss franc 3-Year Bid 5.56% 1.93% 3-Year Ask 5.59% 2.01% 1.5000 5.20% 2.25% Print Done Cancel Ganado's Cross-Currency Swap: SFr for US$. 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 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: The notional principal in Swiss francs is SFr (Round to the nearest Swiss franc.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Assumptions Notional principal Original spot rate (SFr/$) New (1-year later) spot (SFr/$) New fixed US$ interest New fixed Swiss franc interest Values Swap Rates $10,500,000 1.4500 Original: US dollar Original: Swiss franc 3-Year Bid 5.56% 1.93% 3-Year Ask 5.59% 2.01% 1.5000 5.20% 2.25% Print Done Cancel
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