Solved: Assume that general interest rates are lower in the united, Risk Management

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Assume that general interest rates are lower in the united

Question: Assume that general interest rates are lower in the United States than in Canada, and that we face an upward-sloping yield curve. A firm requires long-term funds denominated in Canadian dollars. What are the potential attractions and risks of borrowing short-term in the United States to meet these needs?

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Risk Management: Assume that general interest rates are lower in the united

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