1. Assume covered interest parity holds. (a) What is Carrefour's cost of borrowing in the four currencies if they hedge their exchange rate exposure in the forward market? (b) Are these costs comparable? (c) Why or why not? Ignore transaction costs. a) 4 options: borrow 750,000,000 EUR at 5.087% --> coupon = 38,152,500 EUR borrow 1,194,750,000 GBP at 5.374% --> coupon = 64,205,865 GBP = 40,305,000 EUR borrow 516,000,000 CHF at 3.499% ---> coupon = 18,054,840 CHF = 26,242,500 EUR borrow 765,000,000 USD at 5.413% --> coupon = 41,409,450 USD = 40,597,500 EUR calculate forward rates: b