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Can someone please help me with step by step instructions on how to do these calculations using Excel for BD and BF. I am not
Can someone please help me with step by step instructions on how to do these calculations using Excel for BD and BF. I am not getting the answers given in this problem.
Valuing a Currency Swap Contract Example: Assume the swap exists for 1 year already and has another 3 years to live. The exchange rate has moved from 0.2 to 0.22 ($/). The risk free rates in both countries are: rus = 9%, FRANCE = 8% p.a. Therefore, for the U.S company: BD = $8e-(0.09) +$8e-(0.09)2 + $108e-(0.09)3 = $96.43M BF = 56e-(0.08) + 56e-(0.08)2 + 556e-(0.08)3 = 536.78M $V = BD - (S)BF = 96.43 - (0.22)*536.78 = -$21.66MStep by Step Solution
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