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Consider the following fixed-for-fixed currency swap in Euros and British pounds. The notional principals are GBP67,914,000 and EUR63,000,000, and the GBP rate is 5.50% while

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Consider the following fixed-for-fixed currency swap in Euros and British pounds. The notional principals are GBP67,914,000 and EUR63,000,000, and the GBP rate is 5.50% while the EUR rate is 3.75%. Payments are made semiannually, and the current exchange rate is GBP1.0780/EUR. What are the interest payments each period? a. EUR1,732,500; GBP1,273,388 b. EUR1,273,388; GBP3,465,000 c. EUR1,181,250; GBP1,181,250 d. EUR1,867,635; GBP1,181,250 e. EUR1,181,250; GBP1,867,635

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