Under the terms of a currency swap, a company has agreed to receive a fixed interest rate of 10% per annum on an American dollar loan with a notional principal of $5 million. In exchange, the company will principal of E2.5 million. Net interest payments are exchanged every six months. The swap has a remaining life of thirteen months. The current interest rates are 7% per annum in America and 6% per annum in Holland. Assume both rates are with continuous compounding for all maturities (assuming a flat term structure). The current exchange rate is 1 = $2. Calculate the current value of the currency swap for the company in American dollars. pay a fixed interest rate of 8% per annum on a Dutch Euro loan with a notional Under the terms of a currency swap, a company has agreed to receive a fixed interest rate of 10% per annum on an American dollar loan with a notional principal of $5 million. In exchange, the company will principal of E2.5 million. Net interest payments are exchanged every six months. The swap has a remaining life of thirteen months. The current interest rates are 7% per annum in America and 6% per annum in Holland. Assume both rates are with continuous compounding for all maturities (assuming a flat term structure). The current exchange rate is 1 = $2. Calculate the current value of the currency swap for the company in American dollars. pay a fixed interest rate of 8% per annum on a Dutch Euro loan with a notional