Nippon Airlines needs to borrow 220m USD. It can borrow USD and JPY at 8%...
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Nippon Airlines needs to borrow 220m USD. It can borrow USD and JPY at 8% and 7% respectively. Boeing needs to 24.2b JPY. It can borrow USD and JPY at 6% and 7% respectively. Current exchange rate is 110.00 JPY/USD. Assuming each party has equal bargaining power, what is the arrangement of the currency swap?
- A. Boeing pays Nippon 7.5%; Nippon pays Boeing 7.5%
- B. Boeing pays Nippon 8%; Nippon pays Boeing 7%
- C. Boeing pays Nippon 7%; Nippon pays Boeing 8%
- D. Boeing pays Nippon 6.5%; Nippon pays Boeing 7.5%
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