A U$.$S$.$ company has committed to pay $11$ million kronor to a Swedish company in one year. What is the cost $($in present value$)$ of covering this liability by buying kronor forward? The Swedish interest rate is $0\mathrm{.}6\%,$ and exchange rates are shown in Table $28\mathrm{.}1.$ a Rates show the number of units of foreign currency per U$.$S$.$ dollar, except for the euro, the U$.$K$.$ pound, and the Australian and New Zealand dollars, which show the number of U$.$S$.$ dollars per unit of foreign

currency.

TABLE $28\mathrm{.}1$ Spot and forward exchange rates, July $2020.$