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Assume Carlton enters into a three - year fixed - for - fixed swap agreement to receive Swiss Franc and pay U . S .

Assume Carlton enters into a three-year fixed-for-fixed swap agreement to receive Swiss Franc and pay U.S. dollars annually, on a notional amount of $7,000,000. The spot exchange rate at the time of the swap is SF0.8/$. Assume that one year into the swap agreement, Carlton decides it wishes to unwind the swap agreement and settle it in dollars. Assuming that a two-year fixed rate of interest on the Swiss Franc is now 2.59%, and a two-year fixed rate of interest on the dollar is now 5.90%, and the spot rate of exchange is now SF0.83/$. To Carlton, what is the swap agreement's net
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