the bloomberg web site www bloomberg comprovides interest rate data for many countri 1553959

The Bloomberg Web site (www.bloomberg.comprovides interest rate data for many countries and various maturities. Go to the Market Data section of the Web site and then to Rates & Bonds and then click on “Australian Bonds.” Consider a subsidiary of a U.S.-based MNC that is located in Australia. Assume that when it borrows in Australian dollars, it would pay 1 percent more than the risk-free (government) rates shown on the Web site. What rate would the subsidiary pay for 1-year debt? For 5-year debt ? For 10-year debt ? Assuming that it needs funds for 10 years, do you think it should use 1-year debt, 5-year debt, or 10-year debt? Explain your answer.