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help me asap pleasee TNB has a 10 year, 50 milion loan outstanding with a Japanese bank. The Yen loan has a 2.5%annual interest rate.
help me asap pleasee
TNB has a 10 year, 50 milion loan outstanding with a Japanese bank. The Yen loan has a 2.5%annual interest rate. The loan was taken 5 years ago and so has 5 more years to go. Daibochi, a Japanese plastics maker with operations in Malaysia has just negotiated a RM5million, 5 year loan with Maybank at 7.5% annual interest. Both companies are worried about foreign exchange exposure. Design a currency swap that will enable both companies to manage exchange rate risk. Assume debt servicing will be on 6 monthly basis, the spot Yen/Ringgitrate is 10Y/Ringgit. Nole You TNB has a 10 year, 50 milion loan outstanding with a Japanese bank. The Yen loan has a 2.5%annual interest rate. The loan was taken 5 years ago and so has 5 more years to go. Daibochi, a Japanese plastics maker with operations in Malaysia has just negotiated a RM5million, 5 year loan with Maybank at 7.5% annual interest. Both companies are worried about foreign exchange exposure. Design a currency swap that will enable both companies to manage exchange rate risk. Assume debt servicing will be on 6 monthly basis, the spot Yen/Ringgitrate is 10Y/Ringgit. Nole YouStep by Step Solution
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