Question: Question based on info below Question content area top Part 1 Ganado's Cross-Currency Swap: SFr for US$.Ganado Corporation entered into a 3-year cross-currency interest rate

Question based on info below

Question content area top Part 1 Ganado's Cross-Currency Swap: SFr for US$.Ganado Corporation entered into a 3-year cross-currency interest rate swap to receive U.S. dollars and pay Swiss francs. Ganado, however, decided to unwind the swap after one year thereby having two years left on the settlement costs of unwinding the swap after one year. Repeat the calculations for unwinding, but assume that the following rates now apply:

Assumptions Values Swap Rates 3-Year Bid (%) 3-Year Ask (%)
Notional principal ($) 10500000 Original: US dollar 5.56 5.59
Original spot rate (SFr/$) 1.5 Original: Swiss franc 1.93 2.01
New (1-year later) spot (SFr/$) 1.556
New fixed US$ interest (%) 5.2
New fixed Swiss franc interest (%) 2.5

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