Question
Ganado Corporation entered into a 3-year cross currency interest rate swap to receive U.S. dollars and pay Swiss francs. Ganado, however, decided to unwind the
Ganado Corporation entered into a 3-year cross currency interest rate swap to receive U.S. dollars and pay Swiss francs. Ganado, however, decided to unwind the swap after one yearlong dashthereby having two years left on the settlement costs of unwinding the swap after one year. Repeat the calculations for unwinding, but assume that the following rates now apply.
5- In the first year of the swap, Ganado will pay SFr
(Round to the nearest Swiss franc.)
6- In the second year of the swap, Ganado will pay SFr
(Round to the nearest Swiss franc.)
7- In the third year of the swap, Ganado will pay SFr
(Round to the nearest Swiss franc.)
Ganado, however, decided to unwind the swap after one yearlong dashthereby having two years left on the settlement costs of unwinding the swap after one year.
8- The present value of the dollar cash flow in year 2 is $
(Round to the nearest dollar.)
9- The present value of the dollar cash flow in year 3 is $
(Round to the nearest dollar.)
10- The cumulative present value of the remaining dollar cash flows is $
(Round to the nearest dollar.)
11- The present value of the franc cash flow in year 2 is SFr
(Round to the nearest Swiss franc.)
12- The present value of the franc cash flow in year 3 is SFr
(Round to the nearest Swiss franc.)
13- The cumulative present value of the remaining franc cash flows is SFr
(Round to the nearest Swiss franc.)
14- The conversion from Swiss francs to dollars of the cash outflow is $
(Round to the nearest dollar.)
15- The settlement of the unwinding is $
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