The US interest rate is 4% pa, and the Australian interest rate is 7% pa, both compounding
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Question:
The swap has a remaining life of 2 years, and the exchange rate is 0.6 USD = 1 AUD.
Calculate the value of the currency swap to Lachlin Bank in AUD. Assume that the term structure of interest rates is flat for both currencies. Give your answer in millions of dollars to 3 decimal places.
Value of the currency swap = $ million AUD
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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