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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 21
It is often said that interest rate parity is satisfied when the differential between the interest rates denominated in two currencies equals the forward premium or discount between the two currencies Explain why this is an imprecise statement when the interest rates are not continuously compounded.
Explanation
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The fact is that the interest rate parit...
International Financial Management 2nd Edition by Geert Bekaert ,Robert Hodrick
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