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Assumptioms Notional principal Original spot rate (SFr/$) New (1-year later) spot (SFr/$) New fixed US$ interest New fixed Swiss franc interest Values $9,000,000 1.5000 1.5560
Assumptioms Notional principal Original spot rate (SFr/$) New (1-year later) spot (SFr/$) New fixed US$ interest New fixed Swiss franc interest Values $9,000,000 1.5000 1.5560 5.20% 2.25% Swap Rates Original: US dollar Original: Swiss franc 3-Year Bid 5.56% 1.93% 3-Year Ask 5.59% 2.01% Ganado's Cross-Currency Swap: SFr for US$. Ganado Corporation entered into a 3-year cross-currency interest rate swap to receive U.S. dollars and pay Swiss francs, Ganado, however, decided to unwind the swap after one yearthereby having two years left on the settlement costs of unwinding the swap after one year. Repeat the calculations for unwinding, but assume that the following rates now apply: The notional principal in Swiss francs is SFr (Round to the nearest Swiss franc.)
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