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.

	$
A	$	6	%			5	%
B	$	7	%			4	%

Explain how firm B could use the forward exchange markets to redenominate a 2-year 30m 4 percent pound sterling loan into a 2-year USD-denominated loan.