1. MedStat Unwinds its Cross-Currency Swap. In Exhibit 8.13, MedStat had entered into a 3-year cross-currency swap to pay British pounds at a fixed interest rate of 1.15% and receive U.S. dollars at a fixed interest rate of 1.26% when the spot exchange rate was $1.56/. Using that same swap principal of $10,000,000 and contractual payments, calculate the cost of unwinding the swap after one year has passed (with two years remaining), if the two-year fixed rate of interest on British pounds is now 1.37%, the two-year fixed rate of interest on U.S. dollars is now 1.79%, and the current spot exchange rate is $1.55/. Exhibit 8.13 MedStat's Cross-Currency Swap Swap Component Year 0 MedStat will receive fixed US$ at Year 1 Year 2 Year 3 1.20% 1.20% 1.26% National principal in US$ $10,000,000 Total cash flows in US$ $126.000 $126.000 $10,126,000 Spot exchange rate $1.56-1.00 Total cash flows in UKC 73,718 73,718 16.483974 National principal in UKE 6,410,256 MedStat will pay fixed UKCat 1.15% 1.15% 1.15% Note: The U.S.doc feet 8.12 The pound they from 8.12. All The cost of unwinding the swap after one year has passed is $