Question: Problem 23-21 Suppose the U.S. yield curve is flat at 3% and the euro yield curve is flat at 4%. The current exchange rate is

Problem 23-21 Suppose the U.S. yield curve is flat at 3%

Problem 23-21 Suppose the U.S. yield curve is flat at 3% and the euro yield curve is flat at 4%. The current exchange rate is $1.45 per euro. What will be the swap rate on an agreement to exchange currency over a 3-year period? The swap will call for the exchange of 3 million euros for a given number of dollars in each year. (Do not round intermediate calculations. Enter your answer in millions rounded to 4 decimal places.) Swap rate $ 1.4770 million per year

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