Consider a currency swap with 2 years remaining. A company receives 2.5% per annum in sterling (GBP) and pays 1.8% per annum in dollars once a year. The LIBOR interest rate with continuous compounding is flat in both countries. The British rate is 2.1% per annum and the US rate is 1.6% per annum. The principal amounts are 1 million pounds and $1.29 million dollars, and the current exchange rate is $1.32 = 1. By valuing the currency swap as fixed-rate bonds, what is the present value of the cash flow in sterling (GBP) at the maturity of the currency swap (Or what is the present value of the cash flow in sterling (GBP) at 2 years point? )

	A.	982,842
	B.	1,068,967
	C.	958,870
	D.	992,719

Consider a currency swap with 2 years remaining. A company receives 2.5% per annum in sterling (GBP) and pays 1.8% per annum in dollars once a year. The LIBOR interest rate with continuous compounding is flat in both countries. The British rate is 2.1% per annum and the US rate is 1.6% per annum. The principal amounts are 1 million pounds and $1.29 million dollars, and the current exchange rate is $1.32 = 1. By valuing the currency swap as fixed-rate bonds, what is the value of the dollar bond in $?

	A.	$1,281,944
	B.	$1,259,207
	C.	$1,294,714
	D.	$1,272,225

Consider a currency swap with 2 years remaining. A company receives 2.5% per annum in sterling (GBP) and pays 1.8% per annum in dollars once a year. The LIBOR interest rate with continuous compounding is flat in both countries. The British rate is 2.1% per annum and the US rate is 1.6% per annum. The principal amounts are 1 million pounds and $1.29 million dollars, and the current exchange rate is $1.32 = 1. By valuing the currency swap as fixed-rate bonds, what is the value of the currency swap in $?

	A.	$34,951
	B.	$26,478
	C.	$48,152
	D.	$19,666