Intel has the choice of borrowing dollars at 9.5% or yen at 7% for one year. The

Question:

Intel has the choice of borrowing dollars at 9.5% or yen at 7% for one year. The current exchange rate is? 152 = $1. At what end of year exchange rate would the yen costs of these two loans be equal?

A. ?156.0 = $1

B. ?149.2 = $1

C. ?153.6 = $1

D. ?148.5 = $1

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...