Solve the following problems (No need to show process, just results and answer to the question)

4) Morning Star Air, headquartered in Kunming, China, needs US$29,000,000 for one year to finance working capital. The airline has two alternatives for borrowing:

a. Borrow US$29,000,000 in Eurodollars in London at 7.25% per annum

b. Borrow HK$231,509,900 in Hong Kong at 7.00% per annum, and exchange these Hong Kong dollars at the present exchange rate of HK$7.9831/US$ for U.S. dollars.

At what ending exchange rate would Morning Star Air be indifferent between borrowing U.S. dollars and borrowing Hong Kong dollars?

5) Westminster Insurance Company plans to sell $2,200,000 of eurocommercial paper with a 75-day maturity and discounted to yield 4.90% per annum. What will be the immediate proceeds to Westminster Insurance? Assume a 360-day year.

6) Petrol Ibrico, a European gas company, is borrowing $650,000,000 via a syndicated eurocredit for six years at 100 basis points over LIBOR. LIBOR for the loan will be reset every six months. The funds will be provided by a syndicate of eight leading investment bankers, which will charge up-front fees totaling 1.2% of the principal amount. What is the effective interest cost for the first year if the annual LIBOR is 4.30% during the first six months and 4.50% during the second six months.

7) Assume Nikken Microsystems has sold Internet servers to Telecom Espaa for 691,000. Payment is due in four months and will be made with a trade acceptance from Telecom Espaa Acceptance. The acceptance fee is 1.2% per annum of the face amount of the note. This acceptance will be sold at a 3.7% per annum discount. What is the annualized percentageall-in-cost in euros of this method of trade financing? (NOTE: Assume a 360-day year.)