The Canadian Firm Wants to Borrow in Euros and the }

Multiple Choice

$\begin{array}{lcc} &\text { Canadian interest rate }&\text {french interest rate }\\& \text { on CS loans } & \text { on euro loans } \\\text { Canadian firm } & 5 \% & 5.5 \% \mathrm{a} \\\text { Freneh firm } & 6 \% & 5.5 \%\end{array}$
The Canadian firm wants to borrow in euros and the French firm wants to borrow in Canadian dollars.
-If the Canadian and the French firms share the interest savings from the currency swap equally,the Canadian firm will pay on its French debt after the swap:

A) The same as without the swap.
B) 5%.
C) 5.5%.
D) 6%.