Question: Suppose the U . S . yield curve is flat at 6 % and the euro yield curve is flat at 4 % . The

Suppose the U.S. yield curve is flat at 6% and the euro yield curve is flat at 4%. The current exchange rate is $1.30 per
euro. What cash flows will be exchanged on a 4-year foreign exchange swap with notional principal of 270 million
euros (or equivalently, at current exchange rates, $351 million)?
Note: Do not round intermediate calculations. Enter your answer in dollars not millions rounded to the nearest
dollar value.
per year
Suppose the U.S. yield curve is flat at 6% and the

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