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A U.S. company (firm XYZ) enters into a currency swap in which it pays a fixed rate of 5.0 percent on a notional principal of
A U.S. company (firm XYZ) enters into a currency swap in which it pays a fixed rate of 5.0 percent on a notional principal of 90 million, while a dealer pays a fixed rate of 5.5 percent a notional principal of $100 million, with semiannual payments based on 30 day months and 360 days per year for both parties; the parties exchange notional principals at the beginning of the swap period. The semiannual payment from firm XYZ to the dealer would be: (SHOW WORK)
A.2,025,000
B.2,250,000
C.2,500,000
D.2,750,000
E.3,025,000
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