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Q6. Observe the fixed annual rates that two firms will pay for financing their $10million, 7-year projects in US dollars (USD) and Australian dollars (AUD):

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Q6. Observe the fixed annual rates that two firms will pay for financing their $10million, 7-year projects in US dollars (USD) and Australian dollars (AUD): Firm Fixed rate Fixed rate USD AUD 5.0% 7.5% B 7.0% 8.0% Show an indirect swap in which A and B reduce their cost by the same percentage and without any exchange rate risk to A and B, while SD receives.5% but bears some exchange rate risk

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