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For this and the next 3 questions: Consider a currency swap between Party X in the USA and Party Y in Switzerland. The swap is
For this and the next 3 questions: 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 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. At the initiation of the swap, how much will Party X owe (deliver to) Party Y?
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