3. Argosy Associates (USA). Argosy Associates, a U.S.-based investment partnership, borrows 80,000,000 at a time when the
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3. Argosy Associates (USA). Argosy Associates, a U.S.-based investment partnership, borrows 80,000,000 at a time when the exchange rate is $1.3460/. The entire principal is to be repaid in three years, and interest is 6.250% per annum, paid annu- ally in euros. The euro is expected to depreciate vis vis the dollar at 3% per annum. What is the effective cost of this loan for Argosy?
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Related Book For 
Fundamentals Of Multinational Finance
ISBN: 9780321541642
3rd Edition
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
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