Foreign Exchange Risk and the Cost of Borrowing Swiss Francs. The chapter demonstrated that a firm borrowing in a foreign currency could potentially end up paying a very different effective rate of interest than what it expected. Using the same baseline values of a debt principal of SF1.5 million, a one year period, an initial spot rate of SF1.5200/$, a 5.077% cost of debt, and a 30% tax rate, what is the effective after tax cost of debt for one year for a U.S dollar based company if the exchange rate at the end of the period was: a. SF1.5200/$ b. SF1.4700/$ c. SF1.4270/$ d. SF1.6120/$ a. If the exchange rate at the end of the period was SF1.5200/$, what is the effective after tax cost of debt? 3.5539% (Round to four decimal places) b. If the exchange rate at the end of the period was SF1.4700/$ what is the effective after tax cost of debt? % (Round to four decimal places)