(Answered) A us company needs to raise euro50000000 it plans to raise

Finance

A U.S. company needs to raise €50,000,000. It plans to raise this money by issuing dollar-denominated bonds and using a currency swap to convert the dollars to euros.

The company expects interest rates in both the United States and the euro zone to fall. Find the spot rate (today market rate) and the conversion rate from dollar to Euro.

Take [(Expected raise capital/fund x spot rate)/conversion rate (convert from euro to dollar) = how much exactly you need for this transaction.

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Financial Management, Finance

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