Telefonica, a spanish conglomerat, with 30% revenues in Spain, 20 % in Germany, 20% in Brazil, 15% Mexico and United States respectively is considering undergoing a merger with Amrica Mvil, the largest telecommunication firm in Mexico. For this reason the Telefonica Spain wants to assess its value in Mexican Peso. As a starting point you will need to find the risk free rate in Peso. Which of the indicated rates would you use as the most reasonable choice?

United States Brazil - Mexico - Spain . Germany 14 12 10 Yield (%) 8 8 6M 1Y 2Y 3Y 5Y 10Y 15Y 20Y 30Y Mexico Treasuries LOCAL Maturity Mid Yld 1M 6.5244% 3M 7. 1064% 6M 7.5668% 1Y 8.3731%% ZY 8.6296% 3Y 8.6288% 4Y 8.5965% 5Y 8.6127% TY 8. 6256% 10Y 8.5999% 20Y 8. 6856% 30Y 8.6745% Region Credit Default Swaps Country CDS Curve 1 Year 3 Year 5 Year 7 Year 10 Year S&P LT Rating" Guatemala 100.30 146.01 176.67 186 99 202.05 BE Mexico 34.92 66.06 108.89 147.36 176.26 BBB+ Panama 29.67 54.92 38.30 114.64 134.96 BBB