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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 $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 $1.45 per euro. What cash flows will be exchanged on a 4-year foreign exchange swap with notional principal of 230 million euros (or equivalently, at current exchange rates, $333.5 million)?
Note: Do not round intermediate calculations. Enter your answer in dollars not millions rounded to the nearest dollar value.
\begin{tabular}{|c|c|} \hline Swap rate & per year \\ \hline \end{tabular}
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