International Financial Management 2nd Edition by Geert Bekaert ,Robert Hodrick

تمرين 13

The swap desk at UBS is quoting the following rates on 5-year swaps versus 6-month dollar LIBOR:
U.S. Dollars: 8.75% bid and 8.85% offered
Swiss Francs: 5.25% bid and 5.35% offered
You would like to swap out of Swiss franc debt with a principal of CHF25,000,000 and into fixed-rate dollar debt. At what rates will UBS handle the transaction If the current exchange rate is CHF1.3 / $, what would the cash flows be