Question: Hello Could you please help me solve this question? 5 . Swap contract - from a banker's perspective Suppose Firm A can issue 7- year

 Hello Could you please help me solve this question? 5 .

Hello

Could you please help me solve this question?

Swap contract - from a banker's perspective Suppose Firm A can issue

5 . Swap contract - from a banker's perspective Suppose Firm A can issue 7- year bonds in Germany at the fixed rate of 3% and in the U.S. at 8% . Suppose Firm B can issue 7 - year bonds at the fixed rate of 5 % in Germany and at 9% in the United States . ( a ) Which firm has a comparative advantage in the U.S. capital market ?! ( b ) How would you advise both firms so that they take advantage of each other 's comparative advantage in the German and U. S. capital markets ? ( C ) How much could be saved in borrowing costs by both firms ? ( d ) What could cause the relative comparative advantages in international credit markets

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