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 16500000 (Round to the nearest Swiss franc.) In the first year of the swap, Ganado will receive $ 611600 (Round to the nearest dollar.) In the second year of the swap, Ganado will receive $ 611600. (Round to the nearest dollar.) In the third year of the swap, Ganado will receive $ 11611600. (Round to the nearest dollar.) In the first year of the swap, Ganado will pay SFr 331650 (Round to the nearest Swiss franc.) In the second year of the swap, Ganado will pay SFr 331650 (Round to the nearest Swiss franc.) In the third year of the swap, Ganado will pay SFr 16831650 (Round to the nearest Swiss franc.) Ganado, however, decided to unwind the swap after one year-thereby having two years left on the settler The present value of the dollar cash flow in year 2 is $ 581369. (Round to the nearest dollar.) The present value of the dollar cash flow in year 3 is $ 15208809. (Round to the nearest dollar.) 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 $11,000,000 Swap Rates 3-Year Bid Original: US dollar 5.56% 3-Year Ask 5.59% 1.5000 Original: Swiss franc 1.93% 2.01% 1.5560 5.20% 2.20% Print Done Ganado's Cross-Currency Swap: SFr for US$. 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 16500000 (Round to the nearest Swiss franc.) In the first year of the swap, Ganado will receive $ 611600 (Round to the nearest dollar.) In the second year of the swap, Ganado will receive $ 611600. (Round to the nearest dollar.) In the third year of the swap, Ganado will receive $ 11611600. (Round to the nearest dollar.) In the first year of the swap, Ganado will pay SFr 331650 (Round to the nearest Swiss franc.) In the second year of the swap, Ganado will pay SFr 331650 (Round to the nearest Swiss franc.) In the third year of the swap, Ganado will pay SFr 16831650 (Round to the nearest Swiss franc.) Ganado, however, decided to unwind the swap after one year-thereby having two years left on the settler The present value of the dollar cash flow in year 2 is $ 581369. (Round to the nearest dollar.) The present value of the dollar cash flow in year 3 is $ 15208809. (Round to the nearest dollar.) 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 $11,000,000 Swap Rates 3-Year Bid Original: US dollar 5.56% 3-Year Ask 5.59% 1.5000 Original: Swiss franc 1.93% 2.01% 1.5560 5.20% 2.20% Print Done