1. 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.
2. A project that provides annual cash flows of $2,400 for 9 years costs $12,000 today. If the appropriate discount rate is 9 percent, what is the net present value (NPV)?