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Suppose that on January 01, 2003, the cost of borrowing dollars for the year was 8%. During the year, inflation rates in Euro zone and US were 3% and 2% respectively. If Euro/$ quotes available in the market were: Exchange rate on the date of availing the loan (01.01.2003) Euro 0.90/$ Exchange rate on the date of repaying the loan (31.12.2003) Euro 0.78/$ You are required to calculate the real cost of borrowing dollars in Euro terms for the year