Ashton Bishop is the debt manager for World Telephone, which needs 333 billion Euro financing for its operations. Bishop is considering the choice between issuance of debt denominated in Euros (). Or U.S. dollars, accompanied by a combined Interest rate and currency swap. Bishop believes that issuing the U.S. dollar debt and entering into the swap can lower World's cost of debt by 45 basis points Immediately after selling the debt issue, World would swap the U.S. dollar payments for Euro payments throughout the maturity of the debt. She assumes a constant currency exchange rate throughout the tenor of the swap, Characteristica Par value Tere to caturity Fixed interest rate Interest payment Euce Currency Denti 3.33 billion 3 years 6.25% Annual US Dollar icucrency Debt $3 billion Byears 7.25% ANNUR Spot currency exchange rate Spot currency exchange rate $0.9 per euro ($8.90/ile) 5.80% Curb/2.10 US dollar b. Enter the notional principal and interest payment cash flows of the combined interest rate and currency swap. Year 1 Year o Year 2 Year Cash Flows of the Swap World pays Notional principal billion bllion milion millor million millon billion million Interest payment World receives milion billion Notional principal Interest payment billon billion millor milan million milion c. State whether or not World would reduce its borrowing cost by Issuing the debt denominated in US dollars, accompanied by the combined interest rate and currency swap Yes