Question: You are the debt manager for a U . S . - based multinational. You need to borrow 1 0 0 , 0 0 0

You are the debt manager for a U.S.-based multinational. You need to borrow 100,000,000 for five years. You can either borrow the 100,000,000 directly in Germany or borrow dollars in the U.S. and enter into a currency swap with a swap bank. One risk that you face by using the swap that you do not face by borrowing euros directly is

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