The Siam Cement Group of Bangkok borrowed EUR12.5 million for one year on February 14, 2020,...

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The Siam Cement Group of Bangkok borrowed EUR12.5 million for one year on February 14, 2020, short-term financing provided by a European customer. The interest rate was a low 6.500%. The problem, however, was that the exchange rate between the Thai baht (THB) and the euro (EUR) changed from THB33.860 EUR1.00 on February 14, 2020 to THB33.860 = EUR1.00 on February 16, 2021, when the loan repayment was due. In the end, what was the interest rate paid by Siam Cement in its own currency, Thai baht? The Siam Cement Group of Bangkok borrowed EUR12.5 million for one year on February 14, 2020, short-term financing provided by a European customer. The interest rate was a low 6.500%. The problem, however, was that the exchange rate between the Thai baht (THB) and the euro (EUR) changed from THB33.860 EUR1.00 on February 14, 2020 to THB33.860 = EUR1.00 on February 16, 2021, when the loan repayment was due. In the end, what was the interest rate paid by Siam Cement in its own currency, Thai baht?

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To calculate the interest rate paid by Siam Cement in its own currency Thai baht THB we need to cons... View the full answer