Minnie Corp

Multiple Choice

Minnie Corp.has decided to issue three-year bonds denominated in 5,000,000 Slovakian koruna (SKK) at par.The bonds have a coupon rate of 17%.If the koruna is expected to appreciate from its current level of $.03 to $.032,$.034,and $.035 in years 1,2,and 3,respectively,what is the financing cost of these bonds

A) 17%.
B) 23.18%.
C) 22.36%.
D) 23.39%.