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Suppose the U.S. yield curve is flat at 4% and the euro yield curve is flat at 3%. The current exchange rate is US$1.45 per
Suppose the U.S. yield curve is flat at 4% and the euro yield curve is flat at 3%. The current exchange rate is US$1.45 per euro. What will be the swap rate on an agreement to exchange currency over a 3-year period? The swap will call for the exchange of 2.3 million euros for a given number of dollars in each year. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. Omit the "$" sign in your response.) Swap rate $ per year
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