The Canadian Firm Wants to Borrow in Euros and the }

question 8

Multiple Choice

$\begin{array}{lcc} &\text { Canadian interest rate }&\text {french interest rate }\\& \text { on CS loans } & \text { on euro loans } \\\text { Canadian firm } & 5 \% & 5.5 \% \mathrm{a} \\\text { Freneh firm } & 6 \% & 5.5 \%\end{array}$
The Canadian firm wants to borrow in euros and the French firm wants to borrow in Canadian dollars.
-If the Canadian and the French firms share the interest savings from the currency swap equally,the Canadian firm will pay on its French debt after the swap:

• A) The same as without the swap.
• B) 5%.
• C) 5.5%.
• D) 6%.

---

Definitions:

Recurrent Nightmares

Repeatedly experiencing intensely frightening dreams that disturb sleep and can have a significant impact on daytime functioning.

Essential Oils

Concentrated plant extracts that retain the natural smell and flavor, or "essence," of their source, used in aromatherapy and various traditional medicines.

Insomnia

Inability to obtain a sufficient quality or quantity of sleep.