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Consider a hypothetical five-year currency swap between A and company B. Suppose company A pays fixed rate of interest of 6% in Yen on principal
Consider a hypothetical five-year currency swap between A and company B. Suppose company A pays fixed rate of interest of 6% in Yen on principal of Yen 10,000,000 to company B and receives a fixed rate of 5% in dollars on principal $15,000,000 from company B. In third year, what will be the cash flows of company A? (Show your work)
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