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 SF1.3 million, a one-year period, an initial spot rate of SF1.5300 /$, a 4.831 % cost ofdebt, and a 40 % 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. SF1.5300 /$

b. SF1.4600 /$

c. SF1.4060 /$ d.

SF1.6220 /$

a. If the exchange rate at the end of the period was SF1.5300/$, what is the effective after-tax cost of debt? 2.8986 %(Round to four decimal places.)

b. If the exchange rate at the end of the period was SF1.4600/$, what is the effective after-tax cost of debt? 5.9143 %(Round to four decimal places.)

c. If the exchange rate at the end of the period was SF1.4060/$, what is the effective after-tax cost of debt? nothing %(Round to four decimal places.)

d if the exchange rate at the end of the period was SF 1.6220/$, what is the effective after-tax cost of debt? nothing % (Round to four decimal places)

!!Can I please get some help on question c and d please?