10. ABC Company plans to invest $45 million in Chile to expand its subsidiary's manufacturing output. ABC has two options. It can convert the $45 million at the current exchange rate of 435 pesos to a dollar (i.e., P435/$1), or it can engage in a debt-for-equity swap with its bank, City Bank, by purchasing Chilean debt and then swapping that debt into Chilean equity investments. a. If City Bank quotes bid-offer prices of 92-94 for Chilean loans, what is the bank expecting to receive from ABC Corporation (ignore taxes)? Why would City Bank want to dispose of this loan? b. If ABC decides to purchase the debt from City Bank and convert it to equity, it will have to exchange it at the official rate of P400/$1. Is this option better than investing directly in Chile at the free market rate of P435/S1? c. What official exchange rate will cause ABC to be indifferent between the two options