#3 please

AU.S. MNC and a French MNC need to borrow for their foreign direct investments. The U.S. MNC can issue 10-year bond of 5220 million at 7.34 or 10 year bood of 200 million at 8.25. The French MNC con issue 10-year bond of S220 million a 7 or 10 year bond of 200 million at 8.10%. A swap bank quotes the 10-year currency swaps as $7.54-7.69 and 8.19-8.159 Format TA 5) AXEEBIU 1. Discuss the challenges encountered by the above MNCs in financing for their foreign direct investments. 2. Demonstrate how the above two MNCs benefit from the use of currency swaps. 3. Two years after the initiation of the 10-year currency swaps. S and interest rates have changed to 7%-7.25% and 8%-8.125%, and exchange rate changed to $1.2/. Calculate the value of the currency swap used by each MNC. Which MNC is willing to unwind the original swap? Explain with calculations