Ganados Cross-Currency Swap: Yen for Euros. Use the table of swap rates in the chapter and assume Ganado enters into a swap agreement to receive euros and pay Japanese yen, on a notional principal of 2,000,000. The spot exchange rate at the time of the swap is 105/.

1. Assume that one year into the swap agreement, Ganado decides it wants to unwind the swap agreement and settle it in euros. Assuming that a 1-year fixed rate of interest on the Japanese yen is now 1.0259%, a 1- year fixed rate of interest on the euro is now 2.7692%, and the spot rate of exchange is now 116/, what is the net present value of the swap agreement? Who pays whom what?