What is the dollar cost of this debt

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Question - The Copper Mountain? Group, a private equity firm headquartered in? Boulder, Colorado, borrows ?£5,100,000 for one year at 8.875?% interest.

a. What is the dollar cost of this debt if the pound depreciates from ?$2.0260?/£ to ?$1.9410?/£ over the? year?

b. What is the dollar cost of this debt if the pound appreciates from ?$2.0260?/£ to ?$2.1660?/£ over the? year?

Reference no: EM133031889

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