PAWS,Inc.has structured a currency swap through its bank.PAWS intends to use the funds to finance an expansion in its Irish operations.The terms are that PAWS will borrow $2 million at a 9% rate,with interest only paid in the first 2 years and all principal repaid after three years.The bank will provide punts (Irish currency)at an exchange rate of Ir $\le$.65/$ and an interest rate of 12%.Illustrate the flows between PAWS and the bank during the 3-year loan.

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The Answer of PAWS,Inc.has structured a currency swap through its bank.PAWS intends to use the funds to finance an expansion in its Irish operations.The terms are that PAWS will borrow $2 million at a 9% rate,with interest only paid in the first 2 years and all principal repaid after three years.The bank will provide punts (Irish currency)at an exchange rate of Ir $\le$.65/$ and an interest rate of 12%.Illustrate the flows between PAWS and the bank during the 3-year loan.

PAWS,IncHas Structured a Currency Swap Through Its Bank ≤\le≤ 65/$ and an Interest Rate of 12

PAWS,IncHas Structured a Currency Swap Through Its Bank $\le$ 65/$ and an Interest Rate of 12