Copper Mountain Group (US). The Copper Mountain Group, a private equity firm headquartered in Boulder, Colorado, borrows 5,000,000 pounds for one year at 7.375% interest.
A. What is the dollar cost of this debt if the pound depreciates from $2.0260/Pound to $1.9460/Pound over the year?
B. What is the dollar cost of this debt if the pound appreciates from $2.0260/Pound to $2.1640/Pound over the year?