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Ganado's Cross-Currency Swap: SFr for US$. Ganado Corporation entered into a 3-year cross-currency interest rate swap to receive U.S. dollars and pay Swiss francs. Ganado,
Ganado's Cross-Currency Swap: SFr for US\$. 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 year-thereby 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: The notional principal in Swiss francs is SFI . (Round to the nearest Swiss franc.) \begin{tabular}{lclcc} Assumptions & Values & Swap Rates & 3-Year Bid & 3-Year Ask \\ \hline Notional principal & $9,000,000 & Original: US dollar & 5.56% & 5.59% \\ Original spot rate (SFr/\$) & 1.4500 & Original: Swiss franc & 1.93% & 2.01% \\ New (1-year later) spot (SFr/\$) & 1.5000 & & & \\ New fixed US\$ interest & 5.20% & & & \\ New fixed Swiss franc interest & 2.25% & & & \\ \hline \end{tabular} Ganado's Cross-Currency Swap: SFr for US\$. 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 year-thereby 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: The notional principal in Swiss francs is SFI . (Round to the nearest Swiss franc.) \begin{tabular}{lclcc} Assumptions & Values & Swap Rates & 3-Year Bid & 3-Year Ask \\ \hline Notional principal & $9,000,000 & Original: US dollar & 5.56% & 5.59% \\ Original spot rate (SFr/\$) & 1.4500 & Original: Swiss franc & 1.93% & 2.01% \\ New (1-year later) spot (SFr/\$) & 1.5000 & & & \\ New fixed US\$ interest & 5.20% & & & \\ New fixed Swiss franc interest & 2.25% & & & \\ \hline \end{tabular}
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