Which is a better deal: borrowing at 1% in yen when the risk-free yen interest rate is 3% and the firm’s market-debt rate is 4%, or borrowing in euros at 3% when the risk-free euro interest rate is 5%...

Which is a better deal: borrowing at 1% in yen when the risk-free yen interest rate is 3% and the firm’s market-debt rate is 4%, or borrowing in euros at 3% when the risk-free euro interest rate is 5% and the firm’s market-debt rate is 6%? Assume that uncovered interest rate parity holds and that the corporate tax rate is 34%.