ASSet_MANagemen

Let me see if I can answer atleast the easy one:
“at the end of year3, FF will pay 1,080,000. how can we get 80,000 at year 3?”
combined with:
“NOTE: with this currency swap, endofperiod payments are based on beginning of period interest rates. 8. at the end of year 2. USF pays FC 140,000; FF pays $ 60,000 ”
tells me that EOY3, we would be working with variable rate of EOY2 (Note: Most rates don’t change overnight. For e.g. a floating rate home loan payment will get affected by a rate change some time back; we use the term lookback period).
EOY2 variable rate is 8%