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  3. 4. currency swap. a company has a loan of cad 9 mi

4. Currency swap. A company has a loan of CAD 9 million with a semi-annual...

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4. Currency swap. A company has a loan of CAD 9 million with a semi-annual coupon rate of 5% which matures in 18 months. The company wants to swap into USD. The current exchange rate is 1.2 CAD/USD. The USD and CAD interest rates are 3% and 5%, respectively, and the term structures are flat. What is the fixed payment of USD that sets the value of a USD/CAD swap equal to zero? 4. Currency swap. A company has a loan of CAD 9 million with a semi-annual coupon rate of 5% which matures in 18 months. The company wants to swap into USD. The current exchange rate is 1.2 CAD/USD. The USD and CAD interest rates are 3% and 5%, respectively, and the term structures are flat. What is the fixed payment of USD that sets the value of a USD/CAD swap equal to zero

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