21. Cost of debt EuroTrade Germany is considering to borrow the equivalent of 1mln EUR in USD at the EUR/USD 1.1005 spot rate. The loan will be repaid, with interest, after 1 year. Expected inflation in USA is 4% p.a, and it is 2% p.a. in the Eurozone. Cost of debt in EUR is 6% p.a. Assuming RPPP holds, what is the maximum cost of debt in USD, below which the company would find it more attractive to borrow in USD than in EUR? O a) 4.25% p.a. Ob) 4.17% p.a. 6.29% p.a. d) 6.25% p.a