20 Yields for foreign currencies. The Bloomberg website provides interest rate data for many different foreign currencies over various maturities. Its address is: http://www.bloomberg.com.

a Go to the section that shows yields for different foreign currencies. Review the three-month yields of currencies. Assume that you could borrow at a rate 1 percentage point above the quoted yield for each currency. Which currency would offer you the lowest quoted yield?

b As a cash manager of a UK-based MNC that needs dollars to support UK operations, where would you borrow funds for the next three months? Explain.