kKR and Rox want to borrow USD 116 million kkR can borrow the fixed rate JPY at

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kKR and Rox want to borrow USD 116 million

kkR can borrow the fixed rate JPY at a rate of 4.57% or it can borrow a floating rate USD at LIBOR 0.2%

Rox can borrow the fixed rate JPY at a rate of 4.78% or it can borrow a floating rate USD at LIBOR 0.88%

kkR would like to borrow the fixed rate JPY and Rox would like to borrow the floating rate USD

the current exchange rate is JPY 57/USD

What are possible cost saving to kkR in JPY terms from a swap agreement , assuming cost saving accrue to kkR?

Related Book For answer-question

Multinational Finance Evaluating Opportunities Costs and Risks of Operations

ISBN: 978-1118270127

5th edition

Authors: Kirt C. Butler

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Posted Date: May 16, 2023 07:09 AM

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kKR and Rox want to borrow USD 116 million kkR can borrow the fixed rate JPY at

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To calculate the possible cost savings for kkR in JPY terms from a swap agreement we need to compare ... View the full answer

Multinational Finance Evaluating Opportunities Costs and Risks of Operations

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