Calculate the financing cost

Reference no: EM1350978

An MNE issues ten-year bonds denominated in 500,000 Philippines pesos (PHP) at par. The bonds have a coupon rate of 15%. If the peso remains stable at its current level of $.025 over the lifetime of the bonds and if the MNE holds the bonds until maturity, the financing cost to the MNC will be:

Reference no: EM1350978

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