Prolem 23:13

Suppose the U.S. yield curve is flat at 5% and the euro yield curve is flat at 3%. The current exchange rate is $1.3 per euro. What will be the swap rate on an agreement to exchange currency over a 3-year period? The swap will call for the exchange of 1.3 million euros for a given number of dollars in each year.(Do not round intermediate calculations. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

Swap rate

$ per year