Find the Upcoming Payment Interest Payments in a Currency Swap

question 12

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 amount of $50 million and party B pays Swiss francs at a fixed rate of 4 percent on notional amount 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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Definitions:

Specific Demands

Explicit, defined requests or conditions put forward by one party in a negotiation or conflict resolution context.

Cognitive Resolution

Involves the process of solving problems through thinking, reasoning, and applying information effectively.

Destructive Conflict Processes

Behaviors and tactics in a conflict that escalate tensions, harm relationships, and inhibit mutual understanding or resolution.

Emotions

Feelings or affective states that can influence individuals' thoughts and behaviors, particularly in decision-making processes.