1. Abelmar Company, Inc. has $1,000,000, and wishes to swap for 180,000,000 with Ballentine Company for a year. Interest rate is 15% for dollars; 10% for yen.
2. In the previous transaction between Abelmar and Ballentine, what is the breakeven exchange rate?
3. Given the following LIBOR over 5 years:
   • Year 1: 8.0%
   • Year 2: 7.0%
   • Year 3: 5.5%
   • Year 4: 9.0%
   • Year 5: 10.0%

If Sierra Company has a variable rate loan for an amount of $ 50 million and Tango Company has a similar loan with a principle of $50 million, but a fixed interest rate of 9.5%, if the variable loan interest charged to Sierra Company is as follows: Year 1- 8.5%; Year 2- 7.5%; Year 3-6.0%; Year 4- 9.5%; and Year 5- 10.5%, then what will the total net payment made from one party to the other be in this interest rate swap. Which party will be making the net payment when the five-year total transaction is complete, and what is the amount?

A journal entry consists of transaction identification and summary of transaction with supporting detail and insight. Each scenario will be a section; thus, there will be five sections per journal entry. Your entries must be presented in a 3-5 page Word document; if you do any calculations in Excel, copy and paste them from Excel into the Word document. Make sure your entries are clearly summarized and presented so your instructor knows which transactions your responses are answering.

Your paper should be 3-5 pages in length and conform to APA guidelines