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You have the following limited information upon which to base your decision as to which is the better of two alternative funding arrangements:
(a) Do Alternatives 1 and 2 provide the same value of payment at maturity? Assume that the exchange rate is USD/AUD 1.0225 at maturity.
(b) Is it better to issue USD LIBOR or to issue the currency-option bond hedged with a call option on AUD?
EXPLIN THE PROCEDURE FOLLOWED IN GOVERMENT SYSTEM OF ACCOUNTING IN INDIA.
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