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1. Of course a swaption will be needed. The major reasons being that Bond A is callable after 3 years and matures in 4 years whereas Bond B matures in 5 years. It is understandable that if interest rates decrease substantially Bond A will be called.
2. First let's glance at the required structure to convert Bond A in to Bond B
(a) To eradicate the credit risk involved in Bond A we need to buy a CDS with 4 year maturity. That will alter the credit of the initial portfolio from AA- to AAA.
(b) Second step involves the conversion of fixed rate in to floating rate. For this we require a (fixed payer) interest rate swap in USD with maturity 5 years.
(c) By utilizing a cross currency swap (floating to floating) we exchange USD floating into DEM floating. Therefore we need a currency swap for 5 years.
(d) Ultimately we need to hedge the risk mentioned in part (c). Consequently we should buy a (Bermudan type) swaption in USD.
SAM Technology had AED 640,000,000 of retained earnings on December 31, 2012. The company paid common dividends of AED 30,000,000 in 2012 and had retained earnings of AED 500,000
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