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Titan Coffee can issue bonds in Costa Rica with a par value of 6 0 million Costa Rican colones ( CRC ) , a five

Titan Coffee can issue bonds in Costa Rica with a par value of 60 million Costa Rican colones (CRC), a five percent coupon rate, and priced at par (100% of par value). Titan Coffee can issue two-year bonds, three-year bonds, or four-year bonds. The forecasted exchange rates are CRC 585 per USD 1 at the end of year one, CRC 605 per USD 1 at the end of year two, CRC 630 per USD 1 at the end of year three, and CRC 615 per USD 1 at the end of year four. Assume Titan Coffee issues the three-year bonds. Calculate the USD cash flows needed each year to cover the bond payments. Explain your answer.

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