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Assume that the euro is expected to depreciate 4% annually against the U.S. dollar. If a U.S. company can borrow dollars for 9.3%, and is
Assume that the euro is expected to depreciate 4% annually against the U.S. dollar. If a U.S. company can borrow dollars for 9.3%, and is trying to minimize its expected financing cost, what is the highest interest rate it should be willing to pay to borrow euros?
Answer is 13.85% but I want to see formula and work to get the answer
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