Copper Mountain Group? (U.S.). The Copper Mountain? Group, a private equity firm headquartered in? Boulder, Colorado, borrows ?£4,600,0004,600 for one year at 8.125% interest.
a. What is the dollar cost of this debt if the pound depreciates from ?$2.0210/£ to ?$1.9460?/£ over the? year?
b. What is the dollar cost of this debt if the pound appreciates from ?$2.0210?/£ to ?$2.1620?/£ over the? year?