Designing a Currency Swap

Company X wishes to borrow U$.$S$.$ dollars at a fixed rate of interest. Company Y

wishes to borrow Japanese yen at a fixed rate of interest. The amounts required by the

two companies are roughly the same at the current exchange rate. The companies have

been quoted the following interest rates, which have been adjusted for the impact of

taxes:

We'll design a swap so that:

it is equally attractive to both parties

it nets the financial institution $50$bp

all exchange risk is carried by the bank

After allowing for the bank's gain, what is the net gain for the two companies?

Enter as a $\%$

Considering that Company $x$ won't shoulder any exchange rate risk, you should

be able to figure out what rate they should be receiving as part of the swap.

What's the rate they should pay on the swap?

Considering that Company Y won't shoulder any exchange rate risk, you should

be able to figure out what rate they should be receiving as part of the swap.

What's the rate they should pay on the swap? $46,1$ point

What is the value of the GBP bond? Enter in millions of $$ with $2$ decimal places

$1$ point

What is the value of the USD bond? Enter in millions of $ with $2$ decimal places

$1$ point

What is the value of the swap to the party paying $ and receiving $?$ Enter in

millions of $ with $2$ decimal places

$1$ point

What is the value of the swap to the party receiving $ and paying $?$ Enter in

millions of $ with $2$ decimal places