The profit-motivated purchase and sale of interest-paying securities denominated in different currencies is called ________.

Question

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Interest arbitrage involves buying and selling interest-paying securities denominated in different currencies to take advantage of differences in interest rates between countries. This type of arbitrage is motivated by profit. Currency arbitrage (A) involves buying and selling currencies to take advantage of differences in exchange rates, while currency hedging (B) involves using financial instruments such as options or futures to protect against fluctuations in currency exchange rates. Interest hedging (D) involves using financial instruments to protect against changes in interest rates.

The Profit-Motivated Purchase and Sale of Interest-Paying Securities Denominated in Different