Interest Rate Parity The / exchange rate is 0.7635/ and the one-year forward rate is 0.76/. Suppose
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Interest Rate Parity The £/€ exchange rate is £0.7635/€ and the one-year forward rate is €0.76/£. Suppose interest rate parity holds, and the current one-year risk-free rate in the Eurozone is 0.8 per cent. What must the one-year risk-free rate be in the UK?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780077178239
3rd Edition
Authors: David Hillier, Iain Clacher, Stephen A. Ross
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