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A U.S. investor obtains Ghana cedis when the cedi is worth $.33 and invests in a one-year money market security that provides a yield (in
A U.S. investor obtains Ghana cedis when the cedi is worth $.33 and invests in a one-year
money market security that provides a yield (in cedis) of 24%. At the end of one year, the
investor converts the proceeds from the investment back to dollars at the prevailing spot
rate of S.26. What is the effective yield earned by this foreign investor?
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Advanced Finance
Authors: Michael Fardon
1st Edition
1872962319, 1872962173, 978-1872962313, 978-1872962177
