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 ayear crosscurrency swap to pay British pounds at a fixed interest rate of
and receive US dollars at a fixed interest rate of
when the spot exchange rate was
$equals
Using that same swap principal of
$ comma comma
and contractual payments, calculate the cost of unwinding the swap after one year has passedwith two years remaining if the twoyear fixed rate of interest on British pounds is now
the twoyear fixed rate of interest on US dollars is now
and the current spot exchange rate is
$equals
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