Throughout the 1990s, interest rates in Japan were lower than interest rates in the United States. As

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Throughout the 1990s, interest rates in Japan were lower than interest rates in the United States.

As a result, many Japanese investors were tempted to borrow in Japan and invest the proceeds in the United States. Explain why this strategy does not represent an arbitrage opportunity.

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Corporate Finance

ISBN: 9780137845071

6th Edition

Authors: Jonathan Berk, Peter DeMarzo

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Throughout the 1990s, interest rates in Japan were lower than interest rates in the United States. As

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Corporate Finance

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