Question
#7 (Interest rate parity) On August 8th the six-month risk-free rate of interest in Switzerland was 6 percent.If the spot exchange rate for dollars for
#7 (Interest rate parity) On August 8th the six-month risk-free rate of interest in Switzerland was 6 percent.If the spot exchange rate for dollars for Swiss francs is 0.9254 and the six-month forward exchange rate is 0.9255, what would you expect the U.S. six-month risk-free rate to be?
a.The U.S. six-month risk-free rate is ______%.(Round to two decimal places.)
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Modern Portfolio Theory and Investment Analysis
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
9th edition
9781118805800, 1118469941, 1118805801, 978-1118469941
