Suppose in problem 5 that because of currency risk, Viacom would prefer to have dollar debt, and Gaz de France would prefer to have euro debt. How could an investment bank structure a currency swap...


Suppose in problem 5 that because of currency risk, Viacom would prefer to have dollar debt, and Gaz de France would prefer to have euro debt. How could an investment bank structure a currency swap that would allow each of the firms to issue bonds denominated in the currency in which the firm has a comparative advantage while respecting the firms’ preferences about currency risks?






May 04, 2022
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