Trident Corporation entered into a 3-year cross-currency interest rate swap to receive U.S. dollars and pay Swiss francs. Trident, 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 rates shown below now apply.

Assumptions____________________________Values

Notional principal.............................$ 10,000,000

Spot exchange rate, SFr/$....................................1.5000

Spot exchange rate, $/euro..........................1.1200

Swap Rates___________3-Year Bid_________3-Year Ask

U.S. dollar.......................5.56%............................5.59%

Swiss franc-SFr.................1.93%............................2.01%