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An Australian company wishes to invest AUD100 000 surplus cash for three months. Three-month interest rates in the U.S. are 1.00% pa, the USD to

An Australian company wishes to invest AUD100 000 surplus cash for three months. Three-month interest rates in the U.S. are 1.00% pa, the USD to AUD spot rate is 0.6600 and the estimated spot rate at maturity is 0.6700.

What is the estimated rate of return per year?

Group of answer choices

2.53%

1.77%

1.00%

7.08%

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