hard · Debt Capital Markets pricing-yields-curve
An issuer is deciding between issuing in USD or EUR. They can issue 5-year USD debt at 5.00% or 5-year EUR debt at 3.00%.
If the 5-year cross-currency basis is -25 bps (meaning EUR is more expensive to swap back to USD), what is the synthetic USD cost of issuing in EUR?
- 5.25%
- 4.75%
- 5.00%
- 3.25%
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