Question
A 4000 Swedish Krona bill with a 200 Krona coupon is trading for 3500 Krona, and a 5000 Swiss Franc Bill with a 50 Franc
A 4000 Swedish Krona bill with a 200 Krona coupon is trading for 3500 Krona, and a 5000 Swiss Franc Bill with a 50 Franc coupon is trading for 4500 Francs. Both mature in 1 year. The Franc is currently trading at 9 Swedish Krona. If uncovered interest parity holds, the market believes the franc will trade at ____ Krona in 1 years' time.
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Forecasting for Economics and Business
Authors: Gloria Gonzalez Rivera
1st edition
131474936, 978-1315510415, 1315510413, 978-0131474932
