The swap desk at UBS is quoting the following rates on 5-year swaps versus 6-month dollar LIBOR:

Question:

U.S. Dollars: ....... 8.75% bid and 8.85% offered

Swiss Francs: .......5.25% bid and 5.35% offered

You would like to swap out of Swiss franc debt with a principal of CHF25,000,000 and into fixed-rate dollar debt. At what rates will UBS handle the transaction? If the current exchange rate is CHF1.3/$, what would the cash flows be?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...