00:01
So we're looking at a transaction involving a swiss company and an american bank.
00:09
So the swiss actually borrows, gets a loan from an american bank.
00:15
That's a $1 million loan and converted to the swiss franc.
00:21
That's a loan to a valued corporate customer and the exchange rate is 1 .2 francs per dollar.
00:28
So we just need to accline the information that is given.
00:32
So when the $1 million loan is given, the exchange rate was actually $1 .2 is to 1 .2 francs.
00:51
Now, the borrower agreed to repay the principal plus 5 % interest in one year.
00:58
So the repayment terms is the principal.
01:04
Principle plus 5%.
01:11
Principal plus 5%.
01:13
And the last part of the information is that the borrower repaid swiss francs at loan maturity.
01:20
And when the loan was repaid, the exchange rate was 1 is to 3.
01:25
Okay, so this is happening after the year when the exchange rate now is $1 to 1 .3...