Suppose that the term structure of risk-free interest rates is flat in the United States...
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Suppose that the term structure of riskfree interest rates is flat in the United States and Australia. The USD interest rate is per annum and the AUD rate is per annum. The current value of the AUD is USD. Under the terms of a swap agreement, a financial institution pays per annum in AUD and receives per annum in USD. The principals in the two currencies are $ million USD and million AUD. Payments are exchanged every year, with one exchange having just taken place. The swap will last two more years. What is the USD value of the swap to the financial institution? Assume all interest rates are continuously compounded. Enter your answer rounded to the nearest integer, and skip the dollar sign. For example, if your calculation results in $ you only need to enter 
Suppose that the term structure of riskfree interest rates is flat in the United States and Australia. The USD interest rate is per annum and the AUD rate is per
annum. The current value of the AUD is USD. Under the terms of a swap agreement, a financial institution pays per annum in AUD and receives per annum in
USD. The principals in the two currencies are $ million USD and million AUD. Payments are exchanged every year, with one exchange having just taken place. The swap
will last two more years. What is the USD value of the swap to the financial institution? Assume all interest rates are continuously compounded.
Enter your answer rounded to the nearest integer, and skip the dollar sign. For example, if your calculation results in $ you only need to enter
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