Currency Swaps (Qn 7, 2013 CFAI Mock, PM)

I’ve been cracking my head over the answer and I cannot seem to figure out how the present value factors for EUR and PLN risk-free rates are obtained.

Also I’m not sure how much in detail are we allowed/supposed to discuss the CFAI mocks but any help is very much appreciated, thanks!

this itemset was fucked up…I guessed all the answers and got all of them right, but didnt have a clue how to solve any of them

Bump. Anyone?

we can find a discount factor by the following:

1 / [1+ ( rate x days/days in period )]

so if we were given say 2.0% and asked for a semi-annual rate the discount factor would look like this:

1 / [1 + ( 2.0% x 180/360 )] = 0.99010

LIBOR: nominal rates, not effective rates.