A bank is party to a currency swap where it pays 9% per year in dollars on a principal of $20 million, and receives 3% per year in yen on a principal of 2,000 million yen. Interest payments are annual, and principals are exchanged at the maturity date of the swap, in 2.8 years.

The current exchange rate is $0.0089 per yen. Japanese interest rates are 6% and U.S. interest rates are 11% for all maturities.

1. What is the dollar cash flow in 2.8 years (in $ million)?

2. What is the yen cash flow in 2.8 years (in million of yen)?

3. What is the forward exchange rate in 2.8 years (in dollars per yen)?

4. What is the dollar value of the yen cash flow in 2.8 years (in $ million)?

5. What is the net cash flow in 2.8 years (in $ million)?

6. What is the present value of the net cash flow in 2.8 years (in $ million)?

7. What is the value of the currency swap to the bank (in $ million)?

PLEASE ANSWER 1-7. WILL THUMBS UP.