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Two parties enter a foreign currency swap between USDs and Swiss francs. One USD is currently worth 1.4 Swiss Franc. The American dollar payor will
Two parties enter a foreign currency swap between USDs and Swiss francs. One USD is currently worth 1.4 Swiss Franc. The American dollar payor will provide $560,000. The dollar interest rate is 9%, and the Swiss Franc rate is 8%. Payments will be annual and the swap calls for a life of 3 years. What will be the total payment in francs by the borrower of dollars for year 3?
a. $610,400 b. $650,000 c. $180,000 d. $570,000 e. $265,000
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