3. IBM is considering having its German affiliate issue a 10- year, $100 million bond denominated in euros and priced to yield 7.5%. Alternatively, IBM's German unit can issue a dollar-denominated bond of the same size and maturity and carrying an interest rate of 6.7%. a. If the euro is forecast to depreciate by 1.7% annu- ally, what is the expected dollar cost of the euro- denominated bond? How does this compare to the cost of the dollar bond? b. At what rate of euro depreciation will the dollar cost of the euro-denominated bond equal the dollar cost of the dollar-denominated bond? c. Suppose IBM's German unit faces a 35% corporate tax rate. What is the expected after-tax dollar cost of the euro-denominated bond