Currency swaps!

Hi everyone,

I was hoping someone can please help me out with currency swaps… specifically, I am having difficulty (CFA 2013 Swaps Q5 EOC) understanding which currency needs to be converted at the spot rate in order to find PV fixed/floating … then when that currency needs to be converted again at the new spot exchange rate…

I understand how to calculate PV fixed, PV floating, just not when to convert the notional (if even required?) in the other currency, then when to convert again at the new spot rate … essentially which converted PVs I need to use to value the swap

Thanks much

The notional amount exchanged is calculated based on spot rate extant at the inception of the swap, both the initial exchange (at swap inception) and the final exchange (at swap expiration).