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Foreign Exchange Risk and the Cost of Borrowing Swiss Francs. The chapter demonstrated that a firm borrowing in a foreign currency could potentially end up paying a very different effective rate of interest than what it expected. Using the same baseline values of a debt principal of SF1.5 million, a one-year period, an initial spot rate of SF1.6400/$, a 4.698% cost of debt, and a 34% tax rate, what is the effective after-tax cost of debt for one year for a US dollar-based company if the exchange rate at the end of the period was: a. SF1.5400/S b. SF1.4600/S c. SF1.4280/S d. SF1 6860/$ CL a. If the exchange rate at the end of the period was SF1.5400/5, what is the effective after-tax cost of debt? % (Round to four decimal places) b. If the exchange rate at the end of the period was SF1.4600/5, what is the effective after-tax cost of debt? % (Round to four decimal places) c. If the exchange rate at the end of the period was SF1.4280/S, what is the effective after-tax cost of debt? % (Round to four decimal places) d. If the exchange rate at the end of the period was SF1 6860/$, what is the effective after-tax cost of debt? % (Round to four decimal places.)