Nintendo a japanese game manufacturer takes out a loan with, Ask an Expert

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Nintendo, a Japanese game manufacturer, takes out a loan with the following characteristics: loan amount = EUR 120 million, maturity = 180 days, rate = 4.6 percent (actual/ 360 simple interest). Nintendo does not wish to have exposure to EUR and seeks a forward contract. EURJPY forwards of 180 days are quoted at a discount of 2 percent from the spot value of 160.

Calculate the home currency cost of financing assuming the use of the forward. Format x.xx%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92883941

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