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Consider the Situation of Firm a and FirmB

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Consider the situation of firm A and firmB. The current exchange rate is $2.00/£ Firm A is a U.S. MNC and wants to borrow £30 million for 2 years. Firm B is a British MNC and wants to borrow $60 million for 2 years. Their borrowing opportunities are as shown, both firms have AAA credit ratings. Consider the situation of firm A and firmB. The current exchange rate is $2.00/£ Firm A is a U.S. MNC and wants to borrow £30 million for 2 years. Firm B is a British MNC and wants to borrow $60 million for 2 years. Their borrowing opportunities are as shown, both firms have AAA credit ratings. The IRP 1-year and 2-year forward exchange rates are Devise a direct swap for A and B that has no swap bank. Show their external borrowing. Answer the problem in the template provided. The IRP 1-year and 2-year forward exchange rates are Consider the situation of firm A and firmB. The current exchange rate is $2.00/£ Firm A is a U.S. MNC and wants to borrow £30 million for 2 years. Firm B is a British MNC and wants to borrow $60 million for 2 years. Their borrowing opportunities are as shown, both firms have AAA credit ratings. The IRP 1-year and 2-year forward exchange rates are Devise a direct swap for A and B that has no swap bank. Show their external borrowing. Answer the problem in the template provided. Consider the situation of firm A and firmB. The current exchange rate is $2.00/£ Firm A is a U.S. MNC and wants to borrow £30 million for 2 years. Firm B is a British MNC and wants to borrow $60 million for 2 years. Their borrowing opportunities are as shown, both firms have AAA credit ratings. The IRP 1-year and 2-year forward exchange rates are Devise a direct swap for A and B that has no swap bank. Show their external borrowing. Answer the problem in the template provided. Devise a direct swap for A and B that has no swap bank. Show their external borrowing. Answer the problem in the template provided. Consider the situation of firm A and firmB. The current exchange rate is $2.00/£ Firm A is a U.S. MNC and wants to borrow £30 million for 2 years. Firm B is a British MNC and wants to borrow $60 million for 2 years. Their borrowing opportunities are as shown, both firms have AAA credit ratings. The IRP 1-year and 2-year forward exchange rates are Devise a direct swap for A and B that has no swap bank. Show their external borrowing. Answer the problem in the template provided.

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