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XYZ company, based in the US, plans to finance in Japanese yen. The interest rate it will be 8%. It has used a currency contract
XYZ company, based in the US, plans to finance in Japanese yen. The interest rate it will be 8%. It has used a currency contract to lock in a 2% appreciation of the yen vs. the USD. What is the effective interest rate it will pay:
a)12.2%
b)10.2%
c)8.2%
d)5.8%
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Real Estate Finance And Investments
Authors: William Brueggeman, Jeffrey Fisher
16th Edition
1259919684, 978-1259919688
