Consider a currency swap for $10 million and SF 15 million (Swiss francs). One party pays dollars at a fixed rate of 9% and the other pays Swiss francs at a fixed rate of 8%. The payments are made semiannually based on 180/360 convention.
Calculate the next payment each party makes. ?
Why are these payments less likely to be netted out than a plain vanilla interest rate swap ?
(No Excel.Show your work step by step)