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Question content area top Part 1 XYZ Inc. entered into a three - year cross - currency interest rate swap to receive U . S
Question content area top Part XYZ Inc. entered into a threeyear crosscurrency interest rate swap to receive US dollars and pay Euro XYZ however, decided to unwind the swap after two years. Based on the information below, if XYZ unwinds the swap after twoyear, what is the cumulative present value of the remaining dollar cash flows? Assumptions Values Swap Rates year Bid year Ask Notional principal $ Original: US dollar Original spot exchange rate, $ Original: Euro Newyear later spot exchange rate, $ New fixed US dollar interest New fixed interest Question content area bottom Part The cumulative present value of the remaining dollar cash flows is $ XYZ Inc. entered into a threeyear crosscurrency interest rate swap to receive US dollars and pay Euro XYZ however, decided to unwind the swap after two years. Based on the information below, if XYZ unwinds the swap after twoyear, what is the cumulative present value of the remaining dollar cash flows? The correct answer is Please show work and explain
Question content area top
Part
XYZ Inc. entered into a threeyear crosscurrency interest rate swap to receive US dollars and pay Euro XYZ however, decided to unwind the swap after two years. Based on the information below, if XYZ unwinds the swap after twoyear, what is the cumulative present value of the remaining dollar cash flows?
Assumptions
Values
Swap Rates
year Bid
year Ask
Notional principal
$
Original: US dollar
Original spot exchange rate, $
Original: Euro
Newyear later spot exchange rate, $
New fixed US dollar interest
New fixed interest
Question content area bottom
Part
The cumulative present value of the remaining dollar cash flows is $
XYZ Inc. entered into a threeyear crosscurrency interest rate swap to receive US dollars and pay Euro XYZ however, decided to unwind the swap after two
years. Based on the information below, if XYZ unwinds the swap after twoyear, what is the cumulative present value of the remaining dollar cash flows?
The correct answer is
Please show work and explain
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