Question
A company can issue 11 billion 5-tear yen debt at 1.5%. The current Yen/$ exchange rate is 110. 5 year yen swap rates are 1.25%
A company can issue 11 billion 5-tear yen debt at 1.5%. The current Yen/$ exchange rate is 110. 5 year yen swap rates are 1.25% fixed versus US dollar Libor Floating. How much, and at what rate, can the company swap the yen financing to floating dollar debt?
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Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
6th Edition
0321113624, 978-0321113627
