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Find the Upcoming Payment Interest Payments in a Currency Swap

Question 1

Multiple Choice

Find the upcoming payment interest payments in a currency swap in which party A pays U.S.dollars at a fixed rate of 5 percent on notional principal of $50 million and party B pays Swiss francs at a fixed rate of 4 percent on notional principal of SF35 million.Payments are annual under the assumption of 360 days in a year,and there is no netting.


A) party A pays $2,500,000,and party B pays SF1,400,000
B) party A pays SF1,400,000,and party B pays $2,500,000
C) party A pays SF1,750,000,and party B pays SF1,400,000
D) party A pays $2,500,000,and party B pays $2,000,000
E) party A pays $50 million,and party B pays SF35 million

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