Given the spot exchange rate is USD/AUD=0.71, consider the following loans offers for a US firm and an Australian Firm,
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Given the spot exchange rate is USD/AUD=0.71, consider the following loans offers for a US firm and an Australian Firm,
company Australian company US loan ($) Australian Loan (AUD) 896 10.50% 12% 7.5% 0.5% O 1% O 1.5% 2%
Given the spot exchange rate is USD/AUD=0.71, consider the following loans offers for a US firm and an Australian Firm, what is the value of the margin that could be captured by using a swap? US