Company x wishes to borrow u. s. dollars at a fixed rate of interest. company y wishes to borrow japanese yen at a fixed rate of interest. the amounts required by the two companies are roughly the same at the current exchange rate. the companies are subject to the following interest rates, which have been adjusted to reflect the impact of taxes:
yen dollars
company x 5.0% 9.6%
company y 6.5% 10.0%
design a swap that will net a bank, acting as intermediary, 50 basis points per annum. make the swap equally attractive to the two companies and ensure that all foreign exchange risk is assumed by the bank.

Explain the relationship between consumers and producers in economic growth and activity

Anew 2-lane road is needed in a part of town that is growing. at some point the road will need 4 lanes to handle the anticipated traffic. if the city's optimistic estimate of growth is used, the expansion will be needed in 4 years and has a probability of happening of 40%. for the most likely and pessimistic estimates, the expansion will be needed in 8 and 15 years respectively. the probability of the pessimistic estimate happening is 20%. the expansion will cost $ 4.2 million and the interest rate is 8%. what is the expected pw the expansion will cost?

Lillypad toys is a manufacturer of educational toys for children. six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. what should lillypad's managers prepare for next? a. increased competition from imitators b. a prolonged period of uncontested success c. a sharp decline in demand for the product d. a difficult struggle to move from invention to innovation