Hi!

I saw your questions below and you indicated that 1 out of the 3 you posted was right. Was the 1st one right with 11.15%? have you happened to get the answer for questions (2) and (3) below:

(1)If a U.S.-based firm borrows 1,500,000 for one year at 5.00% and during the year the euro depreciates from an initial rate of $1.30/ to $1.10/, what is the dollar cost of this debt?

(2)If a U.S.-based firm borrows 1,500,000 for one year at 5.00% and during the year the euro depreciates from an initial rate of $1.30/ to $1.10/, what is the foreign exchange transaction cost for the firm?

Could the answer be: 6.92%?

(3)If a Brazil-based firm borrows $2 million for two years at 5.00% and during the period the dollar appreciates from R$2.00/$ to R$2.80/$, what is the annualized R$ cost of this debt?

I am not sure how to calc the annualized ...

Thank you in advance for your help!