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A. FV250 000 000 USD 1,22=6305.000.000 QHF 305.000.000cHF2%=6.100.000cHF PV=(1+1L)6,1mil+(1+1,0)26,1mil+(1+1,1,)36,1mil+(1+1,5)4)46,1mil+(1+1,%0)56,1mil +(1+1,5)66,1mil+(1+1,5%076,1mil+(1+1,5%%86,1mil+(1+1,5%)9611mil+(1+1,5%)26,1+305 =56.255.325,77,319,0638 miletf B. P=1+5%1+2%1=0,0286 F=S(1+p)=1,22(10,0286)=1,1851=118,51%305319=14,0638CHF$=1,2214,0638=11,5277mil$61,53mil$=(1+Rus)1C1+(1+Rus)2C2++(1+RuS)5C5+250mCus=15,163R=261,5315,163=0,058=5,8%>5% General Motors, American-based company that has raised money by issuing a Swiss franc-denominated Eurobond with fixed semiannual coupon payments of 2% on 250 million USD in five years. Otherwise, it can borrow 250m USD 5% fixed rate at Bank of America. Spot rate 1 USD =1.22CHF A. Calculate the present value of CHF bond (2marks) B. Calculate the actual USD that could be save from swap (2marks) . Calculate the actual interest rate GM pay (2marks)