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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 1
XYZ Inc. entered into a three-year cross-currency interest rate swap to receive U.S. 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 two-year, what is the cumulative present value of the remaining dollar cash flows?
Assumptions
Values
Swap Rates
3- year Bid
3-year Ask
Notional principal
$16000000
Original: US dollar
0.0467
0.0532
Original spot exchange rate, $/
1.27
Original: Euro
0.018
0.0274
New(2-year later) spot exchange rate, $/
1.37
New fixed US dollar interest
0.0441
New fixed interest
0.0272
Question content area bottom
Part 1
The cumulative present value of the remaining dollar cash flows is $
XYZ Inc. entered into a three-year cross-currency interest rate swap to receive U.S. 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 two-year, what is the cumulative present value of the remaining dollar cash flows?
The cumulative present value of the remaining dollar cash flows is $enter your response here
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