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equally attracti 7.2. Company X wishes to borrow US dollar at fixed interest rate, company Y wishes to borrow Rs at a fixed rate

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equally attracti 7.2. Company X wishes to borrow US dollar at fixed interest rate, company Y wishes to borrow Rs at a fixed rate interest. The amounts required by the two companies are roughly the same at current exchange rate. The companies have been quoted the following interest rates, which have been adjusted for the impact of taxes. INR Company X 9.6% Company Y 11.1% Dollars 6.0% 6.4%

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