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Montrose Corporation's italian unit is looking to borrow 7 million from Banco Popolare. Banco Popolare quotes a rate of three-month LIBOR plus 0.25 percent for
Montrose Corporation's italian unit is looking to borrow 7 million from Banco Popolare. Banco Popolare quotes a rate of three-month LIBOR plus 0.25 percent for the 60-day loan. Currently, the three-month LIBOR is 3.95 percent. If the exchange rate on the payoff date is 0.7446/$, what is the dollar cost of the loan?
A. $49,000
B. $65,807
C. $39,484
D. $122,516
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