What is the eurobond market

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Reference no: EM133075366

Instructions

Read the case provided and use the Excel file to review pertinent data from the case. Answer the questions below and submit this Word document.

Questions:

1. Describe Carrefour S.A.: What does the company do? What was its primary innovation in the retail sector? Where is it located? Where does it rank on the Global Fortune 500?

2. What is the Eurobond market?

3. Is the Swiss-Franc issue at 3 5/8 percent, a "no-brainer"? Discuss why or why not?

4. In Excel show the cash flows in association with borrowing with each currency (Swiss Franc, British Pound, etc.) Copy and paste the image from Excel into this Word document.

5. Calculate the forward exchange rates for each currency with respect to the euro using the interest rate parity conditions.

6. Convert the cash flows associated with borrowing in each bond into euros using the forward rates and calculate the resulting yield (internal rate of return of the cash flows). Which issue provides the lowest cost of borrowing?

Reference no: EM133075366

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