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A Danish Company entered into a currency swap with a European company in the past to receive 2% per annum in euros and pay 3%
A Danish Company entered into a currency swap with a European company in the past to receive 2% per annum in euros and pay 3% per annum in Krone. The swap has 3 years remaining and has principal amounts of 150 thousand euros and 1 million Krone. The term structure of interest rates is flat at 4% in Denmark and 3% in Europe. The current exchange rate is 1 Krone to 0.10 euros. What is the value of the swap to the Danish Company? Please write out the steps
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