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Problem 14.5 DVR Inc. can borrow dollars for five years at a coupon rate of 2.77 percent. Alternatively, it can borrow yen for five years

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Problem 14.5 DVR Inc. can borrow dollars for five years at a coupon rate of 2.77 percent. Alternatively, it can borrow yen for five years at a rate of 87 percent. The five-year yen swap rates are 0.66-0.70 percent and the dollar swap rates are 2.43-2.46 percent. The currency W/S exchange rate is 87.585. Determine the dollar AIC and the dollar cash flow that DVR Inc. would have to pay under a currency swap where it borrows X1,750,000,000 and swaps the debt service into dollars. Duck Prire Borrow Swap 25 points Problem 14.5 DVR Inc. can borrow dollars for five years at a coupon rate of 2.77 percent. Alternatively, it can borrow yen for five years at a rate of 87 percent. The five-year yen swap rates are 0.66-0.70 percent and the dollar swap rates are 2.43-2.46 percent. The currency W/S exchange rate is 87.585. Determine the dollar AIC and the dollar cash flow that DVR Inc. would have to pay under a currency swap where it borrows X1,750,000,000 and swaps the debt service into dollars. Duck Prire Borrow Swap 25 points

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