Question: Question 6 1 pts The table below presents the costs of borrowing for Dell and FaceBook in Yens and Mexican Pesos, and the quotes for

Question 6 1 pts The table below presents the costs of

Question 6 1 pts The table below presents the costs of borrowing for Dell and FaceBook in Yens and Mexican Pesos, and the quotes for interest swaps in Yens and Mexican Pesos, both quoted against LIBOR. Dell would like to get a P 150,000,000.00 fixed rate loan. FaceBook would like to get a 3,000,000,000.00 fixed rate loan. How much can FaceBook save each year if they enter a currency swap agreement? Borrowing Borrowing Cost Cost in in Yen Mexican Pesos Dell 3.00% P 12.40% FaceBook W4.45% P 11.00% Swap Bank Quote JPY MXN Bid Ask Bid Ask 3.00% 3.52% P 11.00% P 11.21% None of the alternatives 27,900,000 43,500,000 P 1,785,000 P 2,100,000 Question 6 1 pts The table below presents the costs of borrowing for Dell and FaceBook in Yens and Mexican Pesos, and the quotes for interest swaps in Yens and Mexican Pesos, both quoted against LIBOR. Dell would like to get a P 150,000,000.00 fixed rate loan. FaceBook would like to get a 3,000,000,000.00 fixed rate loan. How much can FaceBook save each year if they enter a currency swap agreement? Borrowing Borrowing Cost Cost in in Yen Mexican Pesos Dell 3.00% P 12.40% FaceBook W4.45% P 11.00% Swap Bank Quote JPY MXN Bid Ask Bid Ask 3.00% 3.52% P 11.00% P 11.21% None of the alternatives 27,900,000 43,500,000 P 1,785,000 P 2,100,000

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