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A currency swap has a remaining life of 1 5 months. It involves exchanging interest at 9 . 7 % on 2 0 , 0
A currency swap has a remaining life of months. It involves exchanging interest at on for interest at on $ once a year. The term structure of riskfree interest rates in the United Kingdom is flat at and the term structure of riskfree interest rates in the US is flat at both with continuous compounding The current exchange rate dollars per pound sterling is What is the value of the swap in dollars to the party paying sterling?
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