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Please keep in mind for this question, the answer should be $222,272,310.79. Please show how to get to this, other answers will be disregarded. Assume

Please keep in mind for this question, the answer should be $222,272,310.79. Please show how to get to this, other answers will be disregarded.

image text in transcribed Assume Carlton enters into a three-year fixed-for-fixed swap agreement to receive Swiss Franc and pay U.S. dollar annually, on a notional amount of \\( \\$ 2,000,000 \\). The spot exchange rate at the time of the swap is SFO.8/\\$. Assume that one year into the swap agreement Carlton decides it wishes to unwind the swap agreement and settle it in dollars. Assuming that a two-year fixed rate of interest on the Swiss Franc is now \2.59, and a two-year fixed rate of interest on the dollar is now \5.90, and the spot rate of exchange is now SF0.0.707/\\$. To Carlton, what is the net present value (in dollar) of the swap agreement? (Keep the sign and two decimal places.)

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