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Let's say that a swap calls for exchanging interest only on 10m at 5% for $15m at 3%. There are semiannual payments, and the last
Let's say that a swap calls for exchanging interest only on 10m at 5% for $15m at 3%. There are semiannual payments, and the last payment was yesterday. Today's exchange rate is $1.30/ and the AAA rate is 2% in the U.S. and 2.5% in the euro zone. How would you be able to find the dollar value today to the party paying dollars of a 7-year old swap with 3 years remaining maturity? I'm not sure how to find the answer to this question.
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