(Solved): *** In a fixed-for-fixed currency swap, 3% on a US dollar principal of $150 million is received and ...

*** In a fixed-for-fixed currency swap, 3% on a US dollar principal of $150 million is received and 4% on a British pound principal of 100 million pounds is paid. The current exchange rate is 1.55 dollar per pound. Interest rates in both countries for all maturities are currently 5% (continuously compounded). Payments are exchanged every year. The swap has 2.5 years left in its life. What is the value of the swap? (show all calculations) 1 (3 points) 2 Answers 1-1 1. Previous Next VERSION 2M 9.2 QUESTIONS