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What is the dollar cost of debt

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The Apex Group, a international Real Estate Investment Trust (REIT) based in New York city, borrows f10,000,000 to finance its expansion in London UK, for one year at a rate of 8.225% interest.

a. What is the dollar cost of this debt if the pound depreciates from $1.3550/E to $1.3150/E over the year?

b. What is the dollar cost of this debt if the pound appreciates from $1.3550/E to $1.665/E over the year?

Reference no: EM133074262

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