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A Mexican firm is thinking about borrowing in USD at 3 percent per year.The spot exchange rate for the Mexican peso ( MXN ) is
A Mexican firm is thinking about borrowing in USD at percent per year.The spot exchange rate for the Mexican peso MXN is MXN USDThe oneyear forward rate is MXNUSDSuppose you fully hedge the exchange rate risk of the loan.What does the percent interest rate in USD correspond to in MXNNote: write your answer as a percentage, and with two decimal places. For example, if the answer is you should write
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