A US Company Borrows €100,000 by Issuing Bonds to German Investors

A U.S. company borrows €100,000 by issuing bonds to German investors when the spot rate is $1.25/€. The interest rate is 3 percent per annum.
Which of the following is false concerning the U.S. company's accounting for this loan?

A) If the euro weakens against the U.S. dollar there will be an exchange loss on the bonds payable.
B) If the spot rate falls to $1.20/€ one year later, when the interest payment is accrued, the interest expense will be recorded at $3,600.
C) The company can hedge these bonds by entering a forward purchase contract for euros.
D) If the spot rate falls to $1.23 one year later, the company will report the bonds payable at $123,000.