Question
Assume a risk-free asset in the U.S. is currently yielding 2.2 percent while a Canadian risk-free asset is yielding 2.5 percent. The current spot rate
Assume a risk-free asset in the U.S. is currently yielding 2.2 percent while a Canadian risk-free asset is yielding 2.5 percent. The current spot rate is CAD1.3082. What is the approximate 2-year forward rate if interest rate parity holds?
| CAD1.3193 | ||
| CAD1.3072 | ||
| CAD1.3015 | ||
| CAD1.3161 | ||
| CAD1.3125 |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
