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Business, 23.12.2019 23:31 needhelpwithHW10

Mcdougan associates, a u. s. based investment partnership, borrows eur 80,000,000 at a time when the exchange rate is usd1.3460/eur. the entire principal is to be repaid in three years, and interest is 6.250% per annum paid annually in euros. the euro is expected to depreciate vs. the dollar at 3% per annum. what is the effective cost of this loan for mcdougan associates?

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Mcdougan associates, a u. s. based investment partnership, borrows eur 80,000,000 at a time when the...
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