Question 5

A U.S. company (firm XYZ) enters into a currency swap in which it pays a fixed rate of 5.5 percent on a notional principal of 90 million, while a dealer pays a fixed rate of 6.0 percent a notional principal of $100 million, with semiannual payments based on 30 day months and 360 days per year for both parties; the parties exchange notional principals at the beginning of the swap period. The final exchange from the dealer to firm XYZ would be:

		$102,500,000
		$102,750,000
		$103,000,000
		$103,200,000
		$103,500,000