im having trouble figuring out where the swapped rates come from, 6.2% and 6.8% how are the new rates calculated? Suppose that GE wants to borrow 20 million AUD and Qantas wants to borrow 15 million USD, and that the the current exchange rate is 0.75 USD/AUD. Since in this case 20 million AUD is equivalent to 15 million USD, it creates the perfect environment for a currency swap agreement. Suppose that GE and QA get into the following currency swap agreement. General Electric borrows USD in U.S. market at 5% and Qantas Airways borrows AUD in Australian markets at 8.0%. Then they swap: General Electric gives Qantas USD at 6.2% and Qantas gives General Electric AUD at 6.8%