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How much would delta pay annually to the bank

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Reference no: EM132267375

Delta Corp. entered into a currency swap with its bank, providing that Delta borrows $10 million at 10% and swaps for a 12% Euro loan.

The spot exchange rate is $1.569 per Euro.

If interest only is to be repaid on an annual basis, how much would Delta pay annually to the bank?

a) Euro188,280

b) Euro637,349

c) Euro764,818

d) Euro1,882,800

Reference no: EM132267375

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