[kudra03]

Thank you Sir

[kudra03]

Hello Sir,

Please confirm the overall arbitrage opportunity from using a currency swap is 2.55% is the sum of the fixed interest rate of 2.05 and floating of 0.5 i am a bit confused because the answer has the fixed interest as a negative -2.05%?

[kudra03]

okay i understand now thank you. how was the debt to equity ratio calculated here after implementation…
Cost of capital = 9.6% × 0.769 + 4.6% × 0.231 × 0.8 = 8.2%

[kudra03]

Oh wow! i understand now

Thank you so much John

[Author]

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