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A U.S. bank converted $1 million to Swiss francs to make a Swiss franc loan when the exchange rate was 1.2 francs per dollar. The
A U.S. bank converted $1 million to Swiss francs to make a Swiss franc loan when the exchange rate was 1.2 francs per dollar. The interest rate of the loan is 5%. The borrower repaid the loan in one year when the exchange rate was 1.3 francs per dollar. What was the bank's dollar rate of return? 7.14% 3.08% 5.00%
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