Trigone Associates S.A, a Swiss-based investment partnership, borrows 50,000,000 at a time when the exchange rate is
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Trigone Associates S.A, a Swiss-based investment partnership, borrows €50,000,000 at a time when the exchange rate is CHF1.10 = €1.00. The entire principal is to be repaid in three years, and interest is 3.250% per annum, paid annually in euros. The euro is expected to depreciate vis à vis the Swiss franc at 2% per annum.
What is the effective cost of this loan for Trigone?
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Related Book For 
Multinational Business Finance
ISBN: 9781292445960
16th Global Edition
Authors: David Eiteman, Arthur Stonehill, Michael Moffett
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