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A US investor is considering two bonds of similar risk: ( 1 ) A US 1 - year bond that pays a 5 % interest

A US investor is considering two bonds of similar risk: (1) A US 1-year bond that pays a 5% interest rate or (2) a UK 1-year bond that pay an 8% interest rate. The spot exchange rate is S$=L90Sf. What is the expected 1-year Forward exchange rate F$?
(4 points)
a. $1.80
b. $1.75
c. $1.70
d. $1.60

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