For the next 3 questions. Currency swap: Consider a currency swap between Party X in the USA and Party Y in Switzerland. The swap is for $10 million and SF15 million. Party Y pays dollars of interest to X at a fixed interest rate of 9%. Party X in the USA pays Swiss francs (SF) at a fixed rate of 8%. The payments are made semi-annually based on the exact day count and 360 days in a year. The current period has 181 days.

27. At the initiation of the swap, how much will Party X owe (deliver to) Party Y? a) $10 million b) SF 15 million c) $5 million d) SF5 million e) None of the above

28. At the initiation of the swap, what exchange rate is implied in the amounts exchanged? a) $0.67 b) $1.5 c) $1.00 d) None of the above

29. Calculate the next payment that Party X will make. a) SF603,333.33 b) $603,333.33 c) $452,500 d) SF452,500 e) None of the above