If Consolidated Corporation issues a Eurobond denominated in yen, the 7% interest rate on the $1 million,

Question:

If Consolidated issues a Eurobond denominated in yen, the 7% interest rate on the $1 million, one-year borrowing will be 2% less than rates in the United States. However, ConCorp would have to pay back the principal and interest in Japanese yen. Currently, the is ¥183 = $1. By how much could the yen rise against the dollar before the Euroyen bond would lose its advantage to ConCorp?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...