As a US multinational you decide to borrow long-term debt of 1 million JPY at 10% for one year. The exchange rate on the date you borrowed the debt is 100 JPY/$ and the exchange rate on the date you repaid the debt is 120 JPY/$. The Japanese inflation rate during the year is 6% and the US inflation rate is 4%. What is the nominal cost of borrowing the JPY debt in US$ terms?

a) -8.33%

b) -11.83%

c) -12.33%

d) +11.83%