Morning Star Air, headquartered in Kunming, China, needs

US$28,000,000

for one year to finance working capital. The airline has two alternatives for borrowing:

a. Borrow

US$28,000,000

in Eurodollars in London at

7.35%

per annum

b. Borrow

HK$217,137, 200

in Hong Kong at

7.15%

per annum, and exchange these Hong Kong dollars at the present exchange rate of

HK$7.7549/US$

for U.S. dollars.

At what ending exchange rate would Morning Star Air be indifferent between borrowing U.S. dollars and borrowing Hong Kong dollars?