Petrobras Board of Directors has hired you to assess the companys cost of capital and asks you to address the following questions in your memo Explain the difference between sovereign spread and currency risk Does the sovereign spread compensate for currency risk

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Petrobras Board of Directors has hired you to assess the companys cost of capital and asks you to address the following questions in your memo.

Explain the difference between sovereign spread and currency risk. Does the sovereign spread compensate for currency risk?

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