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Gazprom borrowed money from Deutsche Bank for an acquisition. They borrowed 3 million at 6 % annual interest for one year when the exchange rate
Gazprom borrowed money from Deutsche Bank for an acquisition. They borrowed million at annual interest for one year when the exchange rate for the ruble was : On the maturity date, the rate was : How much did Gazprom get in rubles in this loan? They have to repay the million they borrowed in Euros plus interest, no matter how much that is in rubles. How much will Gazprom have to pay back in rubles? Ignore the interest. Did Gazprom benefit or lose from exchange rate risk on this loan? Why?
Gazprom borrowed money from Deutsche Bank for an acquisition. They borrowed million at annual interest for one year when the exchange rate for the ruble was : On the maturity date, the rate was :
How much did Gazprom get in rubles in this loan?
They have to repay the million they borrowed in Euros plus interest, no matter how much that is in rubles. How much will Gazprom have to pay back in rubles?
Ignore the interest. Did Gazprom benefit or lose from exchange rate risk on this loan? Why?
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