New Hampshire Corp A. New Hampshire Corp. has decided to issue three-year bonds in Russia, denominated in 5,000,000 Russian rubles at par. The bonds have an annual coupon rate of 17% New Hampshire Corp does not expect to have ruble cash-flows to repay the bonds, so they must convert U.S. dollars to rubles to make interest and principal payments on the bonds. The current spot rate is Rub 33.3333/S Assume relative PPP holds between Russia and the US. If inflation in Russia is 5% and is 1% in the US, and is expected to remain constant over the three-year life of the bonds, what is the annual US dollar financing cost of these bonds? (HINT Draw a timeline with the annual Rub cash flows, the annual exchange rates and the annual USD cash flows on it) OA. 10.66% OB. 12.54% OC. 14.87% OD. 19.29%