onsolidating Exposure. The Southern Truck Company is expecting the following cash ows (see the following table) in a foreign currency. In Mexico, one- and two-year interest rates are 10 percent and 8 percent. respectively. These rates apply to deposits of MXN in banks. Assume annual compounding. Estimate the consolidated exposure of the company in year 2. Hint: Because the term structure is not flat, calculate the relevant forward rate.) Time Cash flow (MXN millions) 20 40 onsolidating Exposure. The Southern Truck Company is expecting the following cash ows (see the following table) in a foreign currency. In Mexico, one- and two-year interest rates are 10 percent and 8 percent. respectively. These rates apply to deposits of MXN in banks. Assume annual compounding. Estimate the consolidated exposure of the company in year 2. Hint: Because the term structure is not flat, calculate the relevant forward rate.) Time Cash flow (MXN millions) 20 40