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can you please help? I do not understand what I did wrong. Please explain. Bulldog: Borrows 15,000,000 at the terms above with the intention of
can you please help? I do not understand what I did wrong. Please explain.
Bulldog: Borrows 15,000,000 at the terms above with the intention of swapping debt service into dollars. This means they will pay the swap bank 4.60% on the dollar value of the debt, in exchange for 4.00% on pound debt from the swap bank. Recommended: use a diagram to work out your answer on paper. Complete the following sentences. Enter in whole number form. Do not include the \% symbol or any currency symbols such as $ or E and do not represent as a decimal. For example, if the net interest is 82.35\%, enter 82.35 . Do not enter 82.35%. Do not enter 8235 . 1. Yankee's net interest after the swap will be (A) \%. Therefore. compared to their independent borrowing alternatives, they will save a total amount of (B) pounds over 5 years. See above for the 2. Bulldog's net interest after the swap will be (A) \%. Therefore. compared to their independent borrowing alternatives, they will save a total amount of (B) dollars over 5 years. See above for the correct 3. The swap dealer makes \%. See above for the correct format. Use the following information for three quiz questions. The dollar to pound exchange rate is $1.36=E Bulldog LTD, a UK multinational corporation, requires the equivalent dollar amount, $20.400.000 (rounded) for five years. Their borrowing options are given in the table below. The interest rates are annual rates. "Original" Terms: Suppose that a swap bank offers the following terms: - Dollars: 3.60%4.60% - Pounds: 4.00%4.15% Yankee: Borrows $20,400,000 at the terms above with the intention of swapping debt service into pounds. This means they will pay the swap bank 4.15% on the pound value of the debt, in exchange for 3.60% on dollar debt from the swap bank. Bulldog: Borrows 15,000,000 at the terms above with the intention of swapping debt service into dollars. This means they will pay the swap bank 4.60% on the dollar value of the debt, in exchange for 4.00% on pound debt from the swap bank. Recommended: use a diagram to work out your answer on paper. Complete the following sentences. Enter in whole number form. Do not include the % symbol or any currency symbols such as $ or E and do not represent as a decimal. For example, if the net interest is 82.35%, enter 82.35 . Do not enter 82.35%. Do not enter 8235 . 4.30Step by Step Solution
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