Suppose the interest rate on Russian government bonds is 7.8%,and the current exchange rate is 26.8 rubles per dollar.If the forward exchange rate is 27.2 rubles per dollar,and the current Canadian risk-free interest rate is 4.6%,what is the implied credit spread for the Russian government bonds?
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× 1.046 × R27.2/$ = R106,161...
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