What will be the pound-value of the loan

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Reference no: EM133433412

Scenario: British investment fund Sigma Ventures Limited (Sigma) plans to lend $200m at an annual interest rate of 12.5% for four years to a UK start-up company called BigBytes Limited. Beta has fixed its initial exchange rate to 1.1 dollars to the pound and the initial principal will be converted into pounds at that rate. There are no stage payments involved in the deal. Give your answers below to the nearest penny. a) What will be the pound-value of the loan at the start of the loan period?

Reference no: EM133433412

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