10 Questions
What is the Effective Cost of Borrowing for India Infotech in USDollar?
LIBOR + 0.3%
What is the cost of borrowing for Watson Inc. in INR?
9.2%
What is the cash outflow for India Infotech in the currency swap?
9.2% (INR fixed)
What is the cash inflow for Western Inc. in the currency swap?
LIBOR + 1.0% (USD floating)
What is the interest cost of the lender for India Infotech?
LIBOR + 0.30%
What is the interest cost of the lender for Western Inc.?
LIBOR + 1.0%
What is the role of the swap dealer in the currency swap?
Acts as an intermediary
What is the currency of the loan for IBM Inc. in the given example?
US Dollar
What is the type of interest rate for IBM Inc. in the given example?
Floating rate
What is the type of interest rate for Suzuki Corporation in the given example?
Fixed rate
This quiz covers the concept of interest rates and swap agreements between companies. It involves calculating interest rates and determining the attractiveness of loan options. Test your knowledge of finance and accounting!
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