Question
Assume a risk-free asset in the U.S. is currently yielding 1.6 percent while a Canadian risk-free asset is yielding 1.9 percent. The current spot rate
Assume a risk-free asset in the U.S. is currently yielding 1.6 percent while a Canadian risk-free asset is yielding 1.9 percent. The current spot rate is CAD1.2600. What is the approximate 2-year forward rate if interest rate parity holds?
| CAD 1.2592 | ||
| CAD 1.2613 | ||
| CAD 1.2634 | ||
| CAD 1.2655 | ||
| CAD 1.2676 |
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
8th Edition
007322359X, 9780073223599
