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1,2,3 please Colossal Corporation is a U.S. MNE considering projects in the UK. over the next five years. They are concerned about the exchange rate

1,2,3 please
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Colossal Corporation is a U.S. MNE considering projects in the UK. over the next five years. They are concerned about the exchange rate between the USD and the GBP during that period, and wish to forecast the exchange rate assuming that relative PPP holds between the U.S. and the UK. The spot rate between the USD and GBP today is 0.6410/5 Given the annual inflation forecasts for the U.S. and U.K. in the table below, what are the expected spot rates (in GBP per USD) at the end of years 1, 2 and 3? Year Expected US Inflation Expected UK. inflation 1 1.5% 5.0% 2 1.5% 4.5% 3 2.0% 4.5% A. 0.6631, 0.6827.0.7131 OB. 0.6827, 0.6994, 0.7131 OC. 0.6631, 0.6827, 0.6994 D. 0.6994.0.7131,0.7201 New Hampshire Corp A. New Hampshire Corp. has decided to issue three-year bonds in Russia, denominated in 5,000,000 Russian rubles at par The bonds have an annual coupon rate of 17%. New Hampshire Corp does not expect to have ruble cash flows to repay the bonds, so they must convert U.S. dollars to rubles to make interest and principal payments on the bonds. The current spot rate is Rub 33.3333/$. Assume relative PPP holds between Russia and the U.S. If inflation in Russia is 5% and is 1% in the US and is expected to remain constant over the three-year life of the bonds, what is the annual U.S. dollar financing cost of these bonds? (HINT: Draw a timeline with the annual Rub cash flows, the annual exchange rates and the annual USD cash flows on it.) O A. 10.66% OB 12.54% C. 14.87% D. 19.29% New Hampshire Corp. B New Hampshire Corp. has decided to issue three-year bonds in Russia, denominated in 5,000,000 Russian rubles at par. The bonds have an annual coupon rate of 17%. New Hampshire Corp does not expect to have ruble cash flows to repay the bonds, so they must convert U.S. dollars to rubles to make interest and principal payments on the bonds. The current spot rate is Rub33.3333/$. Assume relative PPP holds between Russia and the U.S. If inflation is 2% in Russia and 4% in the U.S., and is expected to remain constant over the three-year life of the bonds, what is the annual U.S. dollar financing cost of these bonds? (HINT: draw a timeline with the annual Rub cash flows, the annual exchange rates and the annual USD cash flows on it.) O A. 10.66% OB. 12.54% OC. 14.78% OD. 19.29%

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