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Does the Interest Rate Parity Hold in Each of the Following

Question 124

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Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium.
N.Rt = 8, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 7
O.Rt = 7, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 4,Et = 6, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 8
P.Rt = 6, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 5,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 7
Q.Rt = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 4,Et = 6, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 8
R.Rt = 8, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 6,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 7
S.Rt = 7, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 5,Et = 6, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 8
T.Rt = 6, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 4,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 7
U.Rt = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 6, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 8
V.Rt = 8, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 5,Et = 6, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 8
W.Rt = 7, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 8, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 9
X.Rt = 6, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 7,Et = 7, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 8
Y.Rt = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 6,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 9
Z.Rt = 4, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. N.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 O.R<sub>t</sub> = 7, = 4,E<sub>t</sub> = 6, = 8 P.R<sub>t</sub> = 6, = 5,E<sub>t</sub> = 5, = 7 Q.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 6, = 8 R.R<sub>t</sub> = 8, = 6,E<sub>t</sub> = 5, = 7 S.R<sub>t</sub> = 7, = 5,E<sub>t</sub> = 6, = 8 T.R<sub>t</sub> = 6, = 4,E<sub>t</sub> = 5, = 7 U.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 8 V.R<sub>t</sub> = 8, = 5,E<sub>t</sub> = 6, = 8 W.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 8, = 9 X.R<sub>t</sub> = 6, = 7,E<sub>t</sub> = 7, = 8 Y.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 9 Z.R<sub>t</sub> = 4, = 3,E<sub>t</sub> = 5, = 10 = 10

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