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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 million Costa Rican colones CRC a five percent coupon rate, and priced at par of par value Titan Coffee can issue twoyear bonds, threeyear bonds, or fouryear bonds. The forecasted exchange rates are CRC per USD at the end of year one, CRC per USD at the end of year two, CRC per USD at the end of year three, and CRC per USD at the end of year four. Assume Titan Coffee issues the threeyear bonds. Calculate the USD cash flows needed each year to cover the bond payments. Explain your answer.
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