Sambuka, Inc can issue annual coupon bonds in either U S dollars or in Euros that mature in three years Dollar denominated bonds would have a coupon rate of 5 percent Euro denominated bonds would have a coupon rate of 4 percent Assuming that Sambuka can issue bonds worth $10,000,000 in US dollars or 8 million Euros, given that the current exchange rate is $1 25 1 Euro If the forecasted exchange rate for the Euro is $1 27 1 Euro for each of the next three years what is the annual cost of financing for the Euro denominated bonds Which type of bond should Sambuka issue If the forecasted exchange rate for the Euro is $1 22 for each of the next three years what is the annual cost of financing for the Euro denominated bonds Which type of bond should Sambuka issue

Question

Sambuka, Inc  can issue annual coupon bonds in either U S  dollars or in Euros that mature in three years  Dollar denominated bonds would have a coupon rate of 5 percent  Euro denominated bonds would have a coupon rate of 4 percent  Assuming that Sambuka can issue bonds worth $10,000,000 in US dollars or 8 million Euros, given that the current exchange rate is $1 25 1 Euro  If the forecasted exchange rate for the Euro is $1 27 1 Euro for each of the next three years what is the annual cost of financing for the Euro denominated bonds  Which type of bond should Sambuka issue  If the forecasted exchange rate for the Euro is $1 22 for each of the next three years what is the annual cost of financing for the Euro denominated bonds  Which type of bond should Sambuka issue

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Sambuka, Inc. can issue annual coupon bonds in either U.S. dollars or in Euros that mature in three years. Dollar-denominated bonds would have a coupon

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