Consider hypothetical five year currency swap agreement

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Consider a hypothetical 5 year currency swap agreement between BMW and the british aluminium entered into on February 1 2007. it is expected that BMW pays a fixed rate of interest of 5% in sterling pounds and receives a fixed rate from British Aluminium.Interest rate payments are made once in the year and the principle amount is 18 Million and 10 Million.

Reference no: EM131937406

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