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Suppose the U.S. yield curve is flat at 5% and the euro yield curve is flat at 4%. The current exchange rate is $1.20 per
Suppose the U.S. yield curve is flat at 5% and the euro yield curve is flat at 4%. The current exchange rate is $1.20 per euro. What cash flows will be exchanged on a 4-year foreign exchange swap with notional principal of 250 million euros (or equivalently, at current exchange rates, $300 million)?
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