Currency swap transaction

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The CEO considers the investment in South Africa by entering into an agreement with Electo Co to expand the existing plant by investing ZAR120,0D0,000. The CEO believes MidTech should borrow the funds in US$ at a ?xed rate from a bank in the U.S.A. and convert it into ZAR for investment. For this purpose a 5 year (60 month) currency swap transaction will be required. He wants to be provided with a 5 year currency swap proposal. Also depict the swap graphically for the CEO to see how the swan will work.

Reference no: EM133061695

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