What is the initial value of the swap

Reference no: EM13261313

You been ask to set up a 3-year currency swap for a client that needs to exchange a principal of $25000000 (usd) for Euros that they desperately need for a series of investments in Germany. The payments are made on a semi-annual basis and the contract rates for USD and EUR are 1.5% and 2.2%(respectuveky and given per annum with semi-annual compounding) Assume that the current spot exchange rate is 1.38 USD per Euro. A) What is the intial principal value in Euros? B) Create a chart showing the timing and amount of all cash flows. c) What is the initial value of the swap?

Reference no: EM13261313

Questions Cloud

Wrap up introduction with a thesis : Wrap up introduction with a thesis. One way to do this is to imagine you are attempting to convince a friend to visit a show about the artist.

What must the focal length of the camera lens be : Prior to the development of the digital camera, the 35-mm film camera was the norm. The designation "35 mm" refers to the size of the film (screen) on which the image is formed, What must the focal length of the camera lens be

What is the maximum utilization of days : A nursing home contracts with an HMO for skilled nursing care at $2.00 PMPM. If costs are expected to average $120 per day, what is the maximum utilization of days per 1,000 members that the nursing home can experience before it begins to lose mon..

Find location and kthe value of third charge in terms of q : Charges +Q and +3Q are separted by a distance 2m. A third charge is located such that the electrostatic system is in equilibrium. Find the location and kthe value of the third charge in terms of Q.

What is the initial value of the swap : B) Create a chart showing the timing and amount of all cash flows. c) What is the initial value of the swap?

Determine size of solar cell that is need to power the lamp : Assuming that solar energy is used to charge a storage battery which then in turn is to power a lamp of 40W. Solar cell obtains power at the rate of 100milliwatts per square centimeter, and the sunlight time is 12 hours.

Prepare an essay about dystopia : Prepare an essay about dystopia - Possibility of a Science-Fiction Cinema

Find spacing between first and second order bright fringes : In a Young's double slit experiment, if the separation between the two slits is 0.050mm, find the spacing between the first order and second order bright fringes for light with wavelength of 600nm

State how many pi-electrons are in bonding molecular orbital : In the molecular orbital model of benzene, the six p-orbitals combine to form how many molecular orbitals. In the molecular orbital model of benzene, how many pi-electrons are in bonding molecular orbital

User Account

All Pages