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Suppose the euro is expected to appreciate by 2.5% annually against the dollar. If a company can borrow dollars at 6.7%, what is the highest
Suppose the euro is expected to appreciate by 2.5% annually against the dollar. If a company can borrow dollars at 6.7%, 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? (assume no tax differences)
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