Look at Table 24.1. If the 3-month interest rate on Canadian dollars is 6% (annualized), what do

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Look at Table 24.1. If the 3-month interest rate on Canadian dollars is 6% (annualized), what do you think is the 3-month sterling (U.K.) interest rate? Assume a 3-month forward rate of $1.823 = 1£. Explain what would happen if the rate were substantially above your figure.

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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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