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DVR , Inc. can borrow dollars for five years at a coupon rate of 2 . 7 5 percent. Alternatively, it can borrow yen for

DVR, Inc. can borrow dollars for five years at a coupon rate of 2.75 percent. Alternatively, it can borrow yen for five years at a rate of 0.97 percent. The five-year yen swap rates are 0.52-0.82 percent and the dollar swap rates are 2.53-2.56 percent. The current $ exchange rate is 88.775. Determine the dollar AIC and the dollar cash flow that DVR would have to pay under a currency swap where it borrows 1751200000 and swaps the debt service into dollars (round the cashflows to full integer, and round the AICs to three decimals).
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