What kind of risk does the us firm have what kind of swap


A U.S. firm borrowed a 15-year euro loan at a fixed rate to build a European subsidiary. The subsidiary is expected to generate positive earnings in eight years then the part of its earnings will be used to repay the euro loan. Before then the U.S. firm has to make the payments. What kind of risk does the U.S. firm have? What kind of swap could be used to limit its risk? Be specific.

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Financial Management: What kind of risk does the us firm have what kind of swap
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