Sub: Finance Topic: Currency Swaps
Currency Swaps, Interest rate swaps with alternative debt issues.
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Ashton Bishop is the debt manager for World Telephone, which needs €3.33 billion Euro financing for its
operations. Bishop is considering the choice between issuance of debt denominated in:
Euros (€), or
U.S. dollars, accompanied by a combined interest rate and currency swap.
Explain one risk World wo