Copper Mountain Group (U.S.). The Copper Mountain Group, a private equity firm headquartered in Boulder, Colorado, borrows

4,600,0004,600

for one year at

8.125%

interest.

a. What is the dollar cost of this debt if the pound depreciates from

$2.0210/

to

$1.9460/

over the year?

b. What is the dollar cost of this debt if the pound appreciates from

$2.0210/

to

$2.1620/

over the year?