Question: amounts required by the two companies are roughly the same at tn interest rates are the market rates quoted for the two compa rate risk.

amounts required by the two companies are roughly the same at tn interest rates are the market rates quoted for the two compa rate risk. (3pts) at the current exchange rate. The following Ignore the effects of taxes and exchange th effects of Company Company B Yen 5.00% 5.50% Dollar 9.60% 11.00% a. In which type of borrowing does Company A has a com parative advantage? Explain briefly. ? Explain briefly. b. In which type of borrowing does Company B has a comparative advantage c. W hat is the maximum cost savings that can be achieved through an interest rate swap? d. In order for the currency swap to take place, what type of borrowings would Company A prefer? Company B7 Company A prefers Company B prefers

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