Time left 0:26:56 Pepper Corp. wants to finance an investment worth an amount equivalent to USD 116 million. It can borrow fixed-rate JPY at a rate of 4.57%, or it can borrow floating-rate USD at LIBOR +0.2% Truffles Corp. also faces a USD 116 million investment, and it can borrow fixed-rate JPY at a rate of 4.76%, or it can borrow floating-rate USD at LIBOR + 0.88% Pepper Corp. would like to borrow fixed-rate JPY and Truffles Corp. would like to borrow floating-rate USD What are the possible cost savings to Pepper Corp. in INR terms from a swap agreement if Westpac charges a fee of 8 basis points to arrange the swap? Assume all remaining cost savings accrue to Pepper Corp Assume the current exchange rate is JPY57/USD, a. 27.1092 million b. 0.0100 million c. 32.3988 million O d. 0.0083 million O e. There are no cost savings to Pepper Corp, from a swap. Clear my choice Next page 16 IV 2006 aved out of Roo-Fus Inc. wants to issue a Eurobond to finance its international expansions. It can choose between two bank syndicates that are willing to back the Eurobond issue with the following fee schedules ANZ Westpac Principal 393950 393950 Maturity 4 4 Syndication fee 2.16% 1.86% interest rate p.a. 6% 3.01% Coupons per year 2 4 Roo-Fus Inc. is otherwise indifferent between the two banks, so it will choose the offer with the lowest effective annual interest rate for the first payment period What is that effective annual interest rate? O a. 0.03067 b. 0.06132 c. 0.03010 d. 0.03527 e. 0.02760 1. None of these answers is correct Clear my choice