Structured with interest received at fixed or floating rate

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Reference no: EM131066465

Monsanto needs to raise EUR50,000,000 and decides 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 increase.

• Should the swap be structured with interest paid at a fixed or a floating rate? Why?

• Should the swap be structured with interest received at a fixed or a floating rate? Why?

Reference no: EM131066465

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