Question: 5. Swap contract - from a CFO's perspective You are a bond portfolio manager for a large sovereign wealth fund, and have USD 100MM to

5. Swap contract - from a CFO's perspective You are a bond portfolio manager for a large sovereign wealth fund, and have USD 100MM to invest. Because of the currency composition of your benchmark you do not want to take on additional non-USD risk. . You are considering purchasing a 5-year USD bond of Mondel ez (the owners of, among others, Freia), which carries an annual coupon of 10 1/8 % in USD. . Mondelez has issued bonds in several international markets, including the Eurozone. Five-year 6 3/8% Euro coupon bonds of Mondelez are selling at 98.75 in the Eurozone. . The spot exchange rate is currently 1.20 USD/EUR In addition the following market information is available to you

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