Problem 8.15 – Ganado’s Cross-Currency Swap: SFr for US$

Multinational Business Finance

Eiteman, Stonehill, and Moffett

16th Edition

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Difficulty – Hard

Determine the notional principal in SFr, and the amounts paid or received by Ganado for the first, second, and third years. If the firm unwinds the swap after one year, determine the present value of the cash flows, and the settlement of the unwinding.

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