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  3. suppose the u.s. yield curve is flat at 3% and the

Suppose the U.S. yield curve is flat at 3% and the euro yield curve is...

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Finance

Suppose the U.S. yield curve is flat at 3% and the euro yield curve is flat at 2%. The current exchange rate is $1.4 per euro. What will be the swap rate on an agreement to exchange currency over a 3-year period? The swap will call for the exchange of 2.9 million euros for a given number of dollars in each year. (Do not round intermediate calculations. Enter your answer in millions rounded to 4 decimal places.)

Swap Rate _$___________ million per year

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