US Corp can issue debt denominated in US dollars at 6% interest or can issues debt denominated in Euros at 7.5%.
January 8th, 2018
US Corp can issue debt denominated in US dollars at 6% interest or can issues debt denominated in Euros at 7.5%. German Corp can issue debt denominated in US dollars at 5.5% or issue debt denominated in euros at 6.25%. US Corp would prefer to issues debt denominated in Euros and German Corp would prefer to issues debt denominated in Euros and German Corp would prefer ti issue debt denominated in US dollars.1. Give this information would these two companies be a good candidate for a currency swap (yes or No)2. Briefly explain how you know this possible?