A U.S. MNC and a French MN need to borrow for their foreign direct investments. The US MNC can see 10-year bond of million at 7.5% or 10-year boud of 200 million at 8.25%. The French MNC can issue 10-year bond of $220 million 77 yout bond of 200 million at 8.10%. A swap bank quotes the 10-year currency swaps as 5734-76 8.148.15% Format Times New 5 (18) YEEBIU 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 8-5.125%, and exchange rate changed to $1.26. Calculate the value of the currency swap used by each MNC. Which MNC is willing to unwind the original swap? Explain with calculations