PLEASE SOLVE IN EXCEL WITH FORMULAS Find the value today of a 7 year old swap with 3 years remaining maturity The swap calls for exchanging interest only on 10m at 5 percent for $15m at 3 percent SEMIANNUAL payments The last payment was yesterday Todays exchange rate is $1 30 and the AAA rate in the U S is 2 0 and 2 5 in the euro zone USD Amount $15,000,000 00 USD Interest Rate 3 00 APR EUR Amount 10,000,000 00 EUR Interest Rate 5 00 APR Spot Exchange Rate Inflation $1 250000 per EUR Term Years 10 00 Payments yr (choose) Semi Annually Payments yr (calculated) 2 USD level interest payment $300,000 00 EUR level interest payment 250,000 00 Intermediate Time (less than initial swap maturity) 7 yrs Remaining payments (calculated) 6 New Spot Exchange Rate $1 30000 New USD interest rate 2 00 APR New EUR interest rate 2 50 APR PV remaining USD payments PV remaining EUR payments USD value PV remaining EUR payments USD swap value (to party paying USD)

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Question: PLEASE SOLVE IN EXCEL WITH FORMULAS: Find the value today of a 7-year old swap with 3 years remaining maturity. The swap calls for exchanging

PLEASE SOLVE IN EXCEL WITH FORMULAS:

Find the value today of a 7-year old swap with 3 years remaining maturity. The swap calls for exchanging interest only on 10m at 5 percent for $15m at 3 percent. SEMIANNUAL payments. The last payment was yesterday. Todays exchange rate is $1.30/ and the AAA rate in the U.S. is 2.0% and 2.5% in the euro zone.

USD Amount	$15,000,000.00
USD Interest Rate	3.00%	APR
EUR Amount	10,000,000.00
EUR Interest Rate	5.00%	APR
Spot Exchange Rate @ Inflation	$1.250000	per EUR
Term
Years	10.00
Payments/yr (choose)	Semi Annually
Payments/yr (calculated)	2
USD level interest payment	$300,000.00
EUR level interest payment	250,000.00

Intermediate Time (less than initial swap maturity)	7	yrs
Remaining payments (calculated)	6
New Spot Exchange Rate	$1.30000
New USD interest rate	2.00%	APR
New EUR interest rate	2.50%	APR

PV remaining USD payments
PV remaining EUR payments
USD value PV remaining EUR payments
USD swap value (to party paying USD)

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