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Score: 0.18 of 3 pts 3 of 4 (4 complete) HW Score: 26.56%, 2.66 of 10 pts Problem 8-4 (algorithmic) Question Help BBC (Australia). Botany Bay Corporation (BBC) of Australia seeks to borrow US$30,000,000 in the eurodollar market Funding is needed for two years investigation levds to three possibilities Compare the alternatives and make a recommendation 1 Botany Bay could borrow the US$30,000,000 for two years at a fixed 5% rate of interest 2. Botany Bay could borrow the US$30 000 000 a LIBOR 1500% LIBOR is currently 3 500% and the rate would be reset every six months 3 Botany Bay could borrow The US$30,000,000 for one year only at 4 500% At the end of the first year Botany Bay would have to negotiate for a new one year loan For Alternative 1, the interest cost per year is $ 1500000 for the first year and $ 1500000 for the second year (Round to the nearest dollar) for the first 6 months For Alternative 1, the certainty over access to capital is certain for the second 6 months for the third 6 months, and for the fourth 8 months (Select from the drop-down menus) Ckck to select your answer(s) and then click Check Answer. 8 Parts Clear All FCC remaining Previous Next O E 30 lyje Bees too 2 1 7 00 0) 5 I 7 U T T

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