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4. Suppose the spot Yuan/dollar exchange rate is 6.79. Sue, a Chinese national, has 10,000 Yuan that she wants to invest in a U.S. asset
4. Suppose the spot Yuan/dollar exchange rate is 6.79. Sue, a Chinese national, has 10,000 Yuan that she wants to invest in a U.S. asset that promises an annual interest of 7 percent. It the expected exchange rate (Yuan/dollar) after a year is 7.2, how much will Sue earn in Yuan? You should include both the interest received and the gain or loss from exchange rate changes in answering this question. a. 11,346.12 Yuan b. 10,603.8 Yuan c. 10,309.25 Yuan d. 18,026.5 Yuan 17.525.76 Yuan
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