37 Expected Spot Rates Suppose the spot exchange rate for the Tanzanian shilling is TSh2500/. The inflation

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37 Expected Spot Rates Suppose the spot exchange rate for the Tanzanian shilling is TSh2500/£.

The inflation rate in the United Kingdom is 3.5 per cent and it is 8.6 per cent in Tanzania. What do you predict the exchange rate will be in one year? In two years? In five years? What relationship are you using?

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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