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Determining the cheaper borrowing rate

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Reference no: EM132531022

Option 1 : Trading considers to raise USD100 million in the United States in dollar through foreign bonds, that is, Yankee Bond at a borrowing rate of 7%.

Option 2: raising the same amount in dollar (i.e., $100 million) through Eurobonds in the UK would involve less regulatory stringency and possibly at a cheaper borrowing rate than 7%.

Which option is better

Reference no: EM132531022

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