Equator Refining, an Indonesian energy company headquartered in Surabaya, decides to borrow US$40 million for a period of 12 months at an annual rate of 11.5%? What is the cost of this debt in Indonesian rupiah if the USD appreciates from USD/IDR from 15,000 to 15,858? What is the cost of this debt in Indonesian rupiah if the USD depreciates from 15,000 to 14,556?

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To calculate the cost of the debt in Indonesian rupiah we need to consi... View the full answer