This question is based on the following information. Panda Financial International (PFI) holds a foreign currency swap f

[answerhappygod]

This question is based
on the following information.
Panda Financial
International (PFI) holds a foreign currency swap for which PFI
receives 5% per annum semi-annually in Chinese Yuan (RMB) and pays
6% per annum semi-annually in Euro (EUR). The principals
in the two currencies are 10 million EUR and 100 million RMB. The
tenor of the swap is 18 months and the current spot exchange rate
is RMB9.7 per EUR. The term structures of interest rates in money
market yields in China and EU are provided below.
Maturity
(months)
RMB spot
rates
EUR spot
rates
6
12%
6%
12
13%
9%
18
16%
10%
What?is the value of
PFI's cash inflows in Euros?
€8.99 million.
€9.99 million.
€10.99 million.