Question 5: Foreign Exchange Swaps (3/10) Suppose you sign a swap agreement with a large bank (LE) to buy 100, 000 Japanese-Yen each year for the next ve years for X US~Dollars. Your rst payment is in one year, your second payment is in two years, ..., and your fth and last payment is in ve years. The current exchange rate is 100 Yen per Dollar; i.e. SQ : USDollar 0.01 /JapaneseYen (treating the Japanese Yen as the asset)- Suppose the yields on 1year, 2year, 3year, 4year, and 5-year U.S. zero discount bonds are 1%, 2%, 3%, 4%, and 5%. The yield on a 1-year zero discount Japanese bond is 1%. The yield curve on Japanese bonds is at. Assume that all interest rates are continuously compounded. (i) What are the forward prices in Dollar per Yen of forward contracts with maturity in one, two, three, four, and ve years from new (round to the sixth decimal point)? (ii) What is the swap price X