a treasurer wants to borrow usd for 2 months using his holding of chf 20 million bon 600419

A treasurer wants to borrow USD for 2 months, using his holding of CHF 20 million bonds in a cross-currency repo as follows:

Term:

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5 July (spot) to 5 September

2-month USD repo rate:

4.80%

Haircut:

5%

Clean price of bond:

98.00

Coupon rate on bond:

5%

Previous coupon date:

21 March

Accrual basis:

30/360

Spot USD/CHF:

1.4735

  1. How many USD does the treasurer receive on 5 July?

b. How many USD does he repay on 5 September?

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