Two MNCs need to ralse capital for their foreign direct investment. Their 5-year borrowing costs of two MNCs are as follows: A swap bank quotes 5 -year $ swaps at 8.00-8.15 percent and 5-year swaps at 6.00-6.10 percent. With the use of swap contracts: - The U.S. MNC will borrow from its lender at i 1. and enters the swap under which it pays Jand receives Ifrom the swap bank. - The EU MNC will borrow from its lender at 1. and enters the swap under which it pays. J and receives Jfrom the swap bank