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3) Consider a German firm taht wishes to invest euro funds for a period of one year. the firm has a choice of investing in

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3) Consider a German firm taht wishes to invest euro funds for a period of one year. the firm has a choice of investing in a euro bond with one year to maturity, paying an interest rate of 3.35 percent and U.S. dollar bond with one year to maturity, paying an interest rate of 2.25 percent. The current exchange rate i:s euro 1.25 per dollar. Should the german firm invest in euro bond or in the US bond? Explain

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