Marcus inc a us company takes out a 1-year loan in germany, Ask an Expert

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Marcus, Inc., a U.S. company takes out a 1-year loan in Germany. The U.S. 1-year interest rate is 5%, and the German 1-year interest rate is 6%. The spot rate of the euro is $1.33 and the 1-year forward rate is $1.29. Calculate the effective financing rate for Marcus. Show how you derive the answer.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91769134

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