Question
Assume a risk-free asset in the U.S. is currently yielding 2.53 percent while a Canadian risk-free asset is yielding 2.62 percent. The current spot rate
Assume a risk-free asset in the U.S. is currently yielding 2.53 percent while a Canadian risk-free asset is yielding 2.62 percent. The current spot rate is C$1.012. What is the approximate 3-year forward rate if interest rate parity holds?
C$.9939
C$1.0147
C$1.0061
C$.9855
C$1.0023
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
