An MNC issues ten-year bonds denominated in 500,000 Philippines pesos (PHP) at par. The bonds have a coupon rate of 15%. If the peso remains stable at its current level of $0.025 over the lifetime of the bonds and if the MNC holds the bonds until maturity, the financing cost to the MNC will be

a. 12.5%.

b. 10%.

c. 15%.

d. None of these choices are correct.