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An Australian firm wishes to invest AUD156 000 for a year. U.S. interest rates were 1.25-1.75%. The AUD/USD rate at the time of investment was

An Australian firm wishes to invest AUD156 000 for a year. U.S. interest rates were 1.25-1.75%. The AUD/USD rate at the time of investment was 1.5400-1.5600 and at maturity was expected to be 1.8624-1.8864. Calculate the effective rate or return.

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