Question 2 - Currency Swap Firm A is a U.S. MNC and wants to borrow 40 million for 5 years. Firm B is a French MNC and wants to borrow $60 million for years Firm A wants finance euro denominated asset in Germany and therefore wants to borrow euro. A can borrow euro at 7% Firm B wants finance a dollar denominated asset and therefore wants to borrow dollars. B can borrow dollars at 9% Suppose that the Swap Bank publishes these quotes. The convention is to quote against U.S. dollar LIBOR. The current exchange rate is $1.30=1.00 Do firms A and B benefit from swapping? How much each benefit