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On September 10, 1990 the published prices (cents on the dollar) on Latin American bank debt was quoted as follows:
Mexico 43.12
Venezuela 46.25
Chile 70.25
Assume that the central banks of Mexico, Venezuela, and Chile redeemed their debts at 50 percent, 85 percent, and 76 percent, respectively, of face value in a debt-for-equity swap. If the three countries had equal political risk, based purely on financial considerations, the cost of a $40,000,000 assembly plant investment in local currency would be ranked (lowest to highest) in dollar cost as follows:

Sagot :