Morton Company obtains a one-year loan of 2,000,000 Sudanese dinar (SDD) at an interest rate of 6%.At the time the loan is extended,the spot rate of the dinar is $.005.If the spot rate of the dinar at maturity of the loan is $.0035,what is the effective financing rate of borrowing dinar
A) 37.8%.
B) 51.43%.
C) -25.8%.
D) -6%.
E) none of the above
Correct Answer:
Verified
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Q38: Exhibit 20-1
Assume a U.S.-based MNC is borrowing
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