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4. Effective Yield: Assume the U.S. one-year interest rate is 10% and the Canadian one-year interest rate is 18%. Calculate the break-even level of depreciation
4. Effective Yield: Assume the U.S. one-year interest rate is 10% and the Canadian one-year interest rate is 18%. Calculate the break-even level of depreciation in the euro at which the U.S. and Canadian investments would exhibit the same return to a U.S. investor.
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