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Budweiser enters into a $50m three year annual currency swap against C$. FX rate is 1.10 C$/$ US interest rate is fixed at 2% Canadian
Budweiser enters into a $50m three year annual currency swap against C$. FX rate is 1.10 C$/$ US interest rate is fixed at 2% Canadian interest rate is fixed at 3% At the end of one year, after the first cash flows, revalue the swap. What is Budweiser's profit or loss on the swap? FX rate of 1.15 C$/$ US interest rate is 1.5% Canadian interest rate is 2.5%
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