Happy Company wants to raise $2 million with debt financing. The funds are needed to finance working capital, and the firm will repay them with interest in one year. Happy Company's treasurer is considering three options:
(a) Borrowing U.S. dollars from Security Pacific Bank at 8 percent.
(b) Borrowing British pounds from Midland Bank at 14 percent.
(c) Borrowing Japanese yen from Sanwa Bank at 5 percent.