XYZ Corporation enters into a five-year currency swap agreement to receive Swiss francs and pay euros on a notional principal of 5,000,000 euros. The spot exchange rate at the time of signing the agreement is 1.05 Swiss francs per euro. The swap rates for the euro and Swiss franc are as follows: Currency Swap Rates Euro Swiss franc U.S. dollar Japanese yen Years Bid Ask Bid Ask Bid Ask Bid Ask 1 2.99 3.02 1.43 1.47 5.24 5.26 0.23 0.26 2 3.08 3.12 1.68 1.76 5.43 5.46 0.36 0.39 3.24 3.28 1.93 2.01 5.56 5.59 0.56 0.59 4 3.44 3.48 2.15 2.23 5.65 5.68 0.82 0.85 5 3.63 3.67 2.35 2.43 5.73 5.76 1.06 1.12 Immediately after the interest payments for the third year are made, XYZ decides to unwind the swap agreement and settle it in Swiss francs. Assume that now the two-year fixed interest rate on the Swiss franc is 2.10%, the two-year fixed interest rate on the euro is 3.53%, and the spot exchange rate is 1.15 Swiss francs per euro. Should XYZ make payment to or receive payment from the swap dealer? How much is the payment? (13) W N 3 XYZ Corporation enters into a five-year currency swap agreement to receive Swiss francs and pay euros on a notional principal of 5,000,000 euros. The spot exchange rate at the time of signing the agreement is 1.05 Swiss francs per euro. The swap rates for the euro and Swiss franc are as follows: Currency Swap Rates Euro Swiss franc U.S. dollar Japanese yen Years Bid Ask Bid Ask Bid Ask Bid Ask 1 2.99 3.02 1.43 1.47 5.24 5.26 0.23 0.26 2 3.08 3.12 1.68 1.76 5.43 5.46 0.36 0.39 3.24 3.28 1.93 2.01 5.56 5.59 0.56 0.59 4 3.44 3.48 2.15 2.23 5.65 5.68 0.82 0.85 5 3.63 3.67 2.35 2.43 5.73 5.76 1.06 1.12 Immediately after the interest payments for the third year are made, XYZ decides to unwind the swap agreement and settle it in Swiss francs. Assume that now the two-year fixed interest rate on the Swiss franc is 2.10%, the two-year fixed interest rate on the euro is 3.53%, and the spot exchange rate is 1.15 Swiss francs per euro. Should XYZ make payment to or receive payment from the swap dealer? How much is the payment? (13) W N 3