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In August 2002, the French retail giant Carrefour SA is considering alternative currencies for raising (euro) EUR750 million in the eurobond market. Carrefour’s investment bankers believe that the bonds can be issued at 5.25% in euros, 5.375% in British pounds, 3.625% in Swiss francs, and 5.5% in U.S. dollars. Despite the high nominal coupon rate and the lack of any material business activity in the United Kingdom, the British-pound issue appears to provide the lowest cost of funds. The case is designed to introduce topics in international finance such as interest-rate parity, currency risk management, and the eurobond market. Students are tasked with exploring why forward-currency exchange rates vary from spot rates and proposing a eurobond financing strategy for Carrefour.