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A Mexican corporation issues a 5 - year dollar - denominated bond with a face value of USD 6 0 , 0 0 0 ,

 A Mexican corporation issues a 5-year dollar-denominated bond with a face value of USD 60,000,000. Subsequently, the company engages in a 5-year currency swap agreement with a financial institution in order to transform its United States dollar (USD) exposure into euro (EUR) exposure. The major amounts involved in the swap are USD50,000,000 and EUR70,000,000. The American corporation offers a fixed interest rate of 5 per cent, while the bank provides a fixed interest rate of 4.5 percent. The payments are made semi-annually, with each month assumed to have 30 days and the year assumed to have 360 days.Determine and provide a rationale for the remuneration disbursed by the financial institution to the corporate entity upon the conclusion of the fourth fiscal ye. 

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