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Monsanto needs to raise EUR50,000,000 and decides to raise this money by issuing dollar-denominated bonds and using a currency swap to convert the dollars to
Monsanto needs to raise EUR50,000,000 and decides to raise this money by issuing dollar-denominated bonds and using a currency swap to convert the dollars to euros. The company expects interest rates in both the United States and the euro zone to increase.
1. Should the swap be structured with interest paid at a fixed or a floating rate?
2. Should the swap be structured with interest received at a fixed or a floating rate?
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