MedStat Unwinds its Cross-Currency Swap.In Exhibit 8.13,

MedStat had entered into a 3-year cross-currency swap to pay British pounds at a fixed interest rate of 1.15% and receive U.S. dollars at a fixed interest rate of 1.26% when the spot exchange rate was $1.56=1.00. Using that same swap principal of $10,000,000 and contractual payments, calculate the cost of unwinding the swap after one year has passed (with two years remaining), if the two-year fixed rate of interest on British pounds is now 1.43%, the two-year fixed rate of interest on U.S. dollars is now 1.74%, and the current spot exchange rate is $1.52=1.00.

Exhibit 8.13 MedStat's Cross-Currency Swap