Assume that in recent months, most currencies of industrialized countries depreciated substantially against the dollar. Assume that their interest rates were similar to the U.S. interest rate. If non-U.S. firms invested in U.S. Treasury securities during this period, their effective yield would have been:

Question

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As most currencies of industrialized countries depreciated against the dollar, investing in U.S. Treasury securities would have yielded more return in their respective currencies. Therefore, the effective yield would have been higher than the interest rate of their respective countries.

Assume That in Recent Months, Most Currencies of Industrialized Countries