Question: Sony is interested in borrowing ( $ & )amp; & is interested in borrowing . They are facing the following borrowing rates: Acting as an

$Sony is interested in borrowing $ \$ \& $amp; \& is$

Sony is interested in borrowing $ \$ \& $amp; \& is interested in borrowing . They are facing the following borrowing rates: Acting as an intermediary, you assume all FX risk and you charge 50bp for your services. The current spot exchange rate is such that the principal is almost the same in both currencies. Design a SWAP fair to both firms. Graphically represent your swap below. State the effective borrowing rates under your swap

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