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11) (3 pts) ABC Corp is a US firm that plans to borrow the equlvalent of $10 million using 10 year bonds denominated in Euros

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11) (3 pts) ABC Corp is a US firm that plans to borrow the equlvalent of $10 million using 10 year bonds denominated in Euros to obtain a lower interest rate than is available on 10 year dollar denominated bonds. (They can issue Euro denominated bonds at par value using 4% coupon. Sim US dollar denominated bonds at par value would require a 6% coupon) If they decide to go ahead the Euro denominated bonds, what is the most critical point in time when the exchange rate will the greatest impact in determining whether they made the right decision? lar with have

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