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Please look at the attached screenshot for the question Suppose the euro is expected to appreciate by 4% annually against the dollar. If a company

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Suppose the euro is expected to appreciate by 4% annually against the dollar. If a company can borrow dollars at 5.93%, what is the highest interest rate it should be willing to pay to borrow euro, assuming it is trying to minimize its expected financing cost? (Show it as a percentage term)

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