Questions based on the Vale SA case by Dareden Business Publishing

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Assuming the bonds are issued at par, what is the hedged cost of funds to Vale $($from a U$.$S$.$ dollar perspective$)$ from the British pound and the euro bond issues? To do so$,$ hedge the British$-$pound$-$ and euro$-$denominated annual bond payments into U$.$S$.$ dollar cash flows and find the implied interest rate. Which issue would you recommend? $2.$ What is the credit spread implied by the three yields anticipated by Vale? How do these compare to average credit spreads in each of the markets? $3.$ Compare the yield offered to Vale in each of the three currencies to yields offered by comparable companies in each of the three currencies. $4.$ Discuss the possible cross$-$cultural issues on entering European markets to issue new debts. $5.$ Note that Vale has a majority of business in Asian market, and it has entered China for $40$ years. Please explore the possibility of financing in Asia, especially in RMB$,$ and compare this alternative with the USD, EUR, and BRP from both the financial and cross$-$ cultural perspectives.