In line with the vast demand of its bonds in the EU capital markets, the Chevron Oil
Company issued 10% bonds of $100,000 for five years in Paris Capital Market and sell
for $102,000. The market interest rate is 10%. The cost of borrowing to Chevron
Company is:
Select one:
a. 48,000
b. None of the above
c. 40,000
d. 50,000