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Business, 16.04.2020 21:10 shelovejaylocs

JV Coffee Co. has issued 3 year, euro-denominated bonds with a face value of 12mm euros. At the time of the bond issued, this was equal to 15mm in USD, the exchange rate at that time was $1.25/euro. The annual interest payments on these bonds is 1,560,000 euros. What is the average interest rate that JV is paying (based on US dollar payments) if the exchange rate for years 1, 2, and 3 is $1.30?

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JV Coffee Co. has issued 3 year, euro-denominated bonds with a face value of 12mm euros. At the time...
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