Come up with a swap (exchange of interest and principal) for parties A and B who have the following borrowing opportunities.

Consider the situation of firm A and firm B. The current exchange rate is $2.00/ Firm A is a U.S. MNC and wants to borrow 30 million for 2 years. Firm B is a British MNC and wants to borrow $60 million for 2 years. Their borrowing opportunities are as shown, both firms have AAA credit ratings. B $ $68 $7% 5% 4% What are the IRP 1-year and 2-year forward exchange rates? Short Answer Toolbar navigation U AV Consider the situation of firm A and firm B. The current exchange rate is $2.00/ Firm A is a U.S. MNC and wants to borrow 30 million for 2 years. Firm B is a British MNC and wants to borrow $60 million for 2 years. Their borrowing opportunities are as shown, both firms have AAA credit ratings. B $ $68 $7% 5% 4% What are the IRP 1-year and 2-year forward exchange rates? Short Answer Toolbar navigation U AV