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International Financial Management 2nd Edition by Geert Bekaert ,Robert Hodrick
Edition 2ISBN: 978-0132162760International Financial Management 2nd Edition by Geert Bekaert ,Robert Hodrick
Edition 2ISBN: 978-0132162760 Exercise 7
Suppose the 5-year interest rate on a dollar denominated pure discount bond is 4.5% p.a. and the interest rate on a similar pure discount euro-denominated bond is 7.5% p.a. If the current spot rate is $1.08€:, what forward exchange rate prevents covered interest arbitrage
Explanation
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5-year interest rate on both the dollar ...
International Financial Management 2nd Edition by Geert Bekaert ,Robert Hodrick
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