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Please answer the following questions and all its parts(max 4 parts according to chegg). Failure to do so will result in negative rating. Try answering

Please answer the following questions and all its parts(max 4 parts according to chegg). Failure to do so will result in negative rating. Try answering on a piece of paper if possible and scan it please and i will give good rating. Thanks!

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I Finance Hw 2014 15 ca) Differentiate between interest rate and currency swaps using illustrative examples. C) You are the corporate treasurer of x International. Your Firm is tied rated as AAA is able to raise capital in us dollars at flooking rate of LIBOR + 0-5 or Canadian dollars at 5.5 of flat. However, y international, with a rating of A, is only able to raise the capital in us dollar at Floating rate of LIBOR +0.75 or in Canadian dollars ata fited rate of 6.75 Assume that t international wants to borrow us dollars at la Floating rate of interest and international wants to borrow Canadian dollars at a fixed rate of interest A Financial institution is planning to arrange a swap and requires a 30-basis-point spread Construct a swap that equally attractive to x international and international and show the rates of interest they will end up paying. cod what are the risks associated with swap contracts

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