Nintendo, a Japanese game manufacturer, takes out a loan with the following characteristics: loan amount = EUR 120 million, maturity = 180 days, rate = 4.6 percent (actual/ 360 simple interest). Nintendo does not wish to have exposure to EUR and seeks a forward contract. EURJPY forwards of 180 days are quoted at a discount of 2 percent from the spot value of 160.
Calculate the home currency cost of financing assuming the use of the forward. Format x.xx%