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What is the dollar cost of the debt

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Question: Copper Mountain Group (USA). The Copper Mountain Group, a private equity firm headquartered in Boulder, Colorado (U.S.), borrows £5,000,000 for one year at 7.375% interest.

a. What is the dollar cost of this debt if the pound depreciates from $2.0260/£ to $1.9460/£ over the year?

b. What is the dollar cost of this debt if the pound appreciates from $2.0260/£ to $2.1640/£ over the year?

Reference no: EM131708255

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