Question: Problem 2 3 - 2 1 ( Algo ) Suppose the U . S . yield curve is flat at ( 6 %
Problem Algo
Suppose the US yield curve is flat at and the euro yield curve is flat at The current exchange rate is $ per euro. What cash flows will be exchanged on a year foreign exchange swap with notional principal of million euros or equivalently, at current exchange rates, $ million
Note: Do not round intermediate calculations. Enter your answer in dollars not millions rounded to the nearest dollar value.
Answer is complete but not entirely correct.
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