Question: MedStat had entered into a 3 - year cross - currency swap to pay British pounds at a fixed interest rate of 1 . 1

MedStat had entered into a3-year cross-currency swap to pay British pounds at a fixed interest rate of
1.151.15%
and receive U.S. dollars at a fixed interest rate of
1.261.26%
when the spot exchange rate was
$1.561.56equals=1.00.
Using that same swap principal of
$10 comma 000 comma 00010,000,000
and contractual payments, calculate the cost of unwinding the swap after one year has passed(with two years remaining), if the two-year fixed rate of interest on British pounds is now
1.391.39%,
the two-year fixed rate of interest on U.S. dollars is now
1.711.71%,
and the current spot exchange rate is
$1.531.53equals=1.00.
MedStat had entered into a 3 - year cross -

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