Question
Assume that LENOVO wants to borrow U.S. dollars at a floating rate of interest and DELL wants to borrow Chinese Yen at a fixed rate
Assume that LENOVO wants to borrow U.S. dollars at a floating rate of interest and DELL wants to borrow Chinese Yen at a fixed rate of interest. A financial institution is planning to arrange a swap and requires a 50-basis-point spread. If the swap is equally attractive to LENOVO and DELL Suppose that LENOVO has borrowed 10 million. How much interest expense does LENOVO save due to the swap transaction? ?
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
