Please see attached

Answers must be presented in a Word document; if there are any calculations done in Excel, copy and paste them from Excel into the Word document.Make sure the responses are clearly marked so it's easy to tell which questions the responses are answering.Written comments must be formatted in conformity with APA Requirements

Currency and Interest Rate Swaps 1. 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. 2. Coca-Cola is considering entering into a currency swap involving $14 million of U.S. debt for an equivalent amount of euro debt. Assuming the swap matures in 10 years, the interest rate on Pfizer's outstanding 8-year dollar debt is 8% (paid semi-annually), the interest rate on the euro debt is 6 percent (paid semi-annually), and the current spot exchange rate is $1.24/; structure a swap for Coca-Cola. 3. IBM wants to swap out of $10,000,000 of fixed interest rate debt and into floating interest rate debt for 3 years. Assume the fixed interest rate is 7.625 percent and the floating rate is dollar LIBOR. What semiannual interest payments will IBM receive and what will IBM pay? (Hint: A table of interest paid and received by IBM and the financial institution will help). Answers must be presented in a Word document; if there are any calculations done in Excel, copy and paste them from Excel into the Word document. Make sure the responses are clearly marked so it's easy to tell which questions the responses are answering. Written comments must be formatted in conformity with APA Requirements