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Should an MNC borrow primarily short term when short-term interest rates are lower than long-term interest rates? Or should it keep the maturity the same but use a floating- ate loan rather than a fixed-rate loan? Explain.

Should an MNC borrow primarily short term when short-term interest rates are lower than long-term interest rates? Or should it keep the maturity the same but use a floating- ate loan rather than a fixed-rate loan? Explain.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...

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First if short term interest rates are lower than long term interest rates this may be an …View the full answer


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Related Book For  answer-question
International Financial Management

International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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Posted Date: May 28, 2012 02:59:58
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