4. Assuming the bonds are issued at par, what is the cost (in Euros) of each of the bond alternatives? The calculated debt cash flows are discounted by using real forward rates (Table 4). The discounted Euro equivalent cash flows from year 1 to year 10 are given below. Table 4: Cash flows (Par value 1000) conversion GBP Equivalent SF Equivalent USD Equivalent Year UK Euro SF Euro US$ Euro 0 470.81 750.00 1090.12 750.00 735.29 750.00 1 -25.31 -40.31 -39.52 -27.19 -40.44 -41.25 2 -25.31 -40.02 -39.52 -27.83 -40.44 -41.82 3 -25.31 -39.69 -39.52 -28.32 -40.44 -42.10 4 -25.31 -39.40 -39.52 -28.76 -40.44 -42.07 5 -25.31 -39.18 -39.52 -29.20 -40.44 -41.92 6 -25.31 -39.06 -39.52 -29.63 -40.44 -41.69 7 -25.31 -39.04 -39.52 -30.06 -40.44 -41.41 8 -25.31 -39.06 -39.52 -30.48 -40.44 -41.10 -25.31 -39.10 -39.52 -30.89 -40.44 -40.77 10 -496.12 -767.53 -1129.63 -894.08 -775.74 -774.68 NPV -372.40 -406.45 -398.81 9% 7%