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Questions and Answers
What is the Effective Cost of Borrowing for India Infotech in USDollar?
What is the Effective Cost of Borrowing for India Infotech in USDollar?
- LIBOR + 0.6%
- LIBOR + 2.5%
- LIBOR + 0.3% (correct)
- LIBOR + 1.0%
What is the cost of borrowing for Watson Inc. in INR?
What is the cost of borrowing for Watson Inc. in INR?
- 9.2% (correct)
- 8.0%
- 10.0%
- 9.5%
What is the cash outflow for India Infotech in the currency swap?
What is the cash outflow for India Infotech in the currency swap?
- 8.0% (INR fixed)
- LIBOR + 1.0% (USD floating)
- 9.2% (INR fixed) (correct)
- LIBOR + 0.30% (USD floating)
What is the cash inflow for Western Inc. in the currency swap?
What is the cash inflow for Western Inc. in the currency swap?
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What is the interest cost of the lender for India Infotech?
What is the interest cost of the lender for India Infotech?
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What is the interest cost of the lender for Western Inc.?
What is the interest cost of the lender for Western Inc.?
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What is the role of the swap dealer in the currency swap?
What is the role of the swap dealer in the currency swap?
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What is the currency of the loan for IBM Inc. in the given example?
What is the currency of the loan for IBM Inc. in the given example?
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What is the type of interest rate for IBM Inc. in the given example?
What is the type of interest rate for IBM Inc. in the given example?
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What is the type of interest rate for Suzuki Corporation in the given example?
What is the type of interest rate for Suzuki Corporation in the given example?
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