Decided to issue three-year foreign bonds

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General Automobile Corp. has decided to issue three-year foreign bonds in Japan, denominated in 5,000,000,000 Japanese Yen at par. The bonds have an annual coupon rate of 6.0%, and interest is paid annually. If the Yen is expected to appreciate from its current level of $.00905 to $.00915, $.00925, and $.00935 in years 1,2,and 3, respectively, what is the annual financing cost of these bonds in US dollars? DRAW A TIMELINE.

Reference no: EM131357356

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