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what is the all in cost for amazon if they enter a currency swap agreement? Borrowing Cost in Pound 11.00% Borrowing Cost in Euros 5.35%
what is the all in cost for amazon if they enter a currency swap agreement?
Borrowing Cost in Pound 11.00% Borrowing Cost in Euros 5.35% Caterpillar Amaron E11.95% 4.00% Swap Bank Quote GBP EUR Bid Ask Bid Ask E11.00% E11.79% 4.00% 4.90% 490N C4OOX 11.00% 11.7 None of the alternatives The table below presents the costs of borrowing for Caterpillar and Amazon in Pounds and Euros, and the quotes for interest swaps in Pounds and Euros, both quoted against LIBOR. Caterpillar would like to get a foed-rate Euro loan. Amazon would like to get a foed-rate Pound loan. What is the all-in cost for Amazon if they enter a currency swap agreement? Borrowing Cost in Pound Borrowing Cost in Euros Caterpillar 11.00% 5.35% Amazon E11.95% 4.00% Swap Bank Quote GEP EUR Bid Ask Bid Ask E11.00% 11.79% 4.00% 4.90% Step by Step Solution
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