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Find the two difference checks

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Reference no: EM133068736

Assume you have the long GBP position in a 6-Year at-market fixed-for-fixed USD/GBP currency swap. Payments occur at the end of each year. The notional amount is USD 1,000,000. The interest rates are rUSD = 4% and rGBP = 6% The spot rate when the contract originated was X0USD/GBP = 1.45. At the end of year 6, the spot rate is XNUSD/GBP = 1.50. Find the two difference checks, one for the last interest payment and one for the principal payment. Recall, you took a long position in the swap.

Notional principal: USD 34,482.76; Interest: USD 22,068.97

Notional principal: USD 44,882.50; Interest: USD 22,068.97

Notional principal: USD 77,560.00; Interest: USD 34,561.12

Notional principal: USD 34,482.76; Interest: USD 25,077.00

Reference no: EM133068736

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