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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 0,91 percent. The five-year yen swap rates are 0,58-0,76 percent and the dollar swap rates are 2,47-2,5 percent. The current /$ exchange rate is 88,175. Determine the dollar AIC and the dollar cash flow that DVR would have to pay under a currency swap where the borrow 1750600000 and swap the debt service into dollars
Year FC bond cashflow FC received $paid Actual $ cashflow
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AIC%

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