Thermo Dynamics enters into a 3-year currency swap against the Canadian $. Annual interest rates are fixed at 0.03% for the US and 0.029% for Canada. The swap is for US $10million at a fixed exchange rate of 1.11 C$/$. What is the third year cash flow on the Canadian $ side of the swap
Thermo Dynamics enters into a 3-year currency swap against the Canadian $. Annual interest rates are fixed at 0.03% for the US and 0.029% for Canada. The swap is for US $10million at a fixed exchange rate of 1.11 C$/$. What is the third year cash flow on the Canadian $ side of the swap
Chapter20: Short-term Financing
Section: Chapter Questions
Problem 4ST
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Thermo Dynamics enters into a 3-year currency swap against the Canadian $. Annual interest rates are fixed at 0.03% for the US and 0.029% for Canada. The swap is for US $10million at a fixed exchange rate of 1.11 C$/$.
What is the third year cash flow on the Canadian $ side of the swap
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