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Chavez S.A. Chavez S.A., a Venezuelan company, wishes to borrow $8,250,000 for eight weeks. A rate of 6.28% per annum is quoted by potential
Chavez S.A. Chavez S.A., a Venezuelan company, wishes to borrow $8,250,000 for eight weeks. A rate of 6.28% per annum is quoted by potential lenders in New York, Great Britain, and Switzerland using, respectively, international, British, and the Swiss-eurobond definitions of interest (day count conventions). Although all three currency markets assume a 360-day year for interest rate calculations, the U.S. and British markets use the exact number of days in the period in question, 56 days in this case, while the Swiss market assumes a standardized 30-day month. From which source should Chavez borrow? The interest charge on the principal from lenders in New York is $ The interest charge on the principal from lenders in Great Britain is $ The interest charge on the principal from lenders in Switzerland is $ Chavez should borrow from either (Round to the nearest cent.) (Round to the nearest cent.) (Round to the nearest cent.) because of the interest cost. (Select from the drop-down menus.)
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