spot rate is 32.03 and dollar based interest is 6.76%

East Asiatic-Thailand. The East Asiatic Company (EAC) a Danish company with subsidiaries throughout Asia, has been funding its Bangkok idarymarty with US dollar de beste cost and availability of dollapis opposed to Thalbant denominated (B) detit. The ser of EAC Thailand is considering a 1year bank loan for $249.000. The current sporten the dollar-based interest is 6.76% for the year period. 1 year loans are 11.9% in bat a. Assuming expected inflation rates for the coming year of 43% and 1.23 in Thailand and the United Statespectively according to purchase power party, what would be the status in Thai baht terms . EAC's foreign exchange advisers believe strongly that the Thai government wants to push the value of the down against the dolar by over the coming year to oport competitiveness in dollar markets), what might be the efective cost of funds in batter? CHEAC could borrow Thai baht 13.00% per annum, would be cheaper than the part or part ? 2. Assuming expected infotion rates for the coming year of 43% and 12 in Thailand and the United States espectively according to purchase power what would be the cost of one in Thai baht terms? The effective cost of funds, in terms is 8.85 Round to the decimales