Your firm is based in Mexico and you have USD denominated debt. The firm has an interest payment of USD 475,000 is due and the bank is quoting an exchange rate of USD/MXN 18.0912 - 18.1291. The firm needs to buy USD to make the interest payment. How much will it cost in MXN? A. MXN 2,625,586 B. MXN 12,229,290 C. MXN 8,611,323 D. MXN 8,593,320
Your firm is based in Mexico and you have USD denominated debt. The firm has an interest payment of USD 475,000 is due and the bank is quoting an exchange rate of USD/MXN 18.0912 - 18.1291. The firm needs to buy USD to make the interest payment. How much will it cost in MXN? A. MXN 2,625,586 B. MXN 12,229,290 C. MXN 8,611,323 D. MXN 8,593,320
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Your firm is based in Mexico and you have USD denominated debt. The firm has an interest payment of USD 475,000 is due and the bank is quoting an exchange rate of USD/MXN 18.0912 - 18.1291. The firm needs to buy USD to make the interest payment. How much will it cost in MXN?
A. |
MXN 2,625,586 |
|
B. |
MXN 12,229,290 |
|
C. |
MXN 8,611,323 |
|
D. |
MXN 8,593,320 |
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