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A U . S . company borrows 1 5 million CHF at an annual interest rate of 1 . 7 5 % for 1 year.

A U.S. company borrows 15 million CHF at an annual interest rate of 1.75% for 1 year. The spot exchange rate at the time of borrowing is 0.9142 CHF/USD. If the Swiss franc appreciates sharply to 0.8693 CHF/USD at the end of the 1-year period, the companys all-in cost of debt in USD is closest to
A.0.75%
B.7.00%
C.4.00%
D.2.00%

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