Euromarket investment and fund raising A U.S.-based multinational company has two subsidiaries, one in Mexico (local currency, Mexican peso, MP) and one in Japan (local currency, yen). Forecasts of business operations indicate the following short-term financing position for each subsidiary (in equivalent U.S. dollars): Mexico: $85 million excess cash to be invested (lent) Japan: $61 million funds to be raised (borrowed) The management gathered the following data: Determine the effective interest rates for all three currencies in both the Euromarket and the domestic market, thon indicate where the funds should be invested and raised. (Note: Assume that because of local regulations, a subsidiary is not permitted to use the domestic market of any other subsidiary.) The effective interest rate in the Euromarket for the US$ $ % (Round to two decimal places.) Data Table - (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) US $ Currency MP MP11.57/US$ - 3.03% V X108.01/US$ +1.52% Item Spot exchange rates Forecast percentage change Interest rates Nominal Euromarket Domestic Effective Euromarket Domestic 3.06% 3.75% 6.19% 5,88% 1.99% 2.11% Print Done