Japanese investors purchased from Walt Disney Productions projected yen royalties. The 20-year stream of royalties is for Tokyo Disneyland. The present value of that stream of royalties, discounted at 5 percent (the return required by the Japanese investors), was 95 billion. Disney took the yen proceeds from the sale, converted them to dollars, and invested the dollars in bonds yielding 8 percent. At the time of the sale, the exchange rate was 79.8408 = $1.

a. What amount (in dollars) did Disney realize from the sale of its yen proceeds?

b. Describe the similarities and differences between Walt Disney's transaction and a currency/interest rate swap.