What is the dollar cost of the loan

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Zylex Corporation's German unit is looking to borrow €4.5 million from Deutsche Bank. Deutsche Bank quotes a rate of three month LIBOR plus 0.5 percent for the 90-day loan. Currently the three-month LIBOR is 4.175 percent. If the exchange rate on the payoff date is €0.8334/$, what is the dollar cost of the loan?

Reference no: EM132379989

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