CHAPTER 8 Ganado Corporation entered into a three-year cross-currency interest rate swap to receive US dollars and pay Swiss francs. Ganado, however, decided to unwind the swap after one year - thereby 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 new apply Values 10,000,000 1.5 1.856 5.20% 2.20% Assumptions Notional principal Original pot exchange rate, S/S Now (year later) pot exchange S/S Now fired US dollar terem New fined Swiss frame interest Swap Rates Original US dollar Original: Swiss franc year bid 5.5696 1.93% J-year ask 5.59% 2.01% CHAPTER 8 Ganado Corporation entered into a three-year cross-currency interest rate swap to receive US dollars and pay Swiss francs. Ganado, however, decided to unwind the swap after one year - thereby 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 new apply Values 10,000,000 1.5 1.856 5.20% 2.20% Assumptions Notional principal Original pot exchange rate, S/S Now (year later) pot exchange S/S Now fired US dollar terem New fined Swiss frame interest Swap Rates Original US dollar Original: Swiss franc year bid 5.5696 1.93% J-year ask 5.59% 2.01%