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Assume that Sirih Company will receive USD200,000 in 180 days. Assume the following interest rates: Malaysia U.S. 360-day borrowing rate 7% 5% 360-day deposit rate

Assume that Sirih Company will receive USD200,000 in 180 days. Assume the following interest rates:

Malaysia

U.S.

360-day borrowing rate

7%

5%

360-day deposit rate

6%

4%

Assume the forward rate of the USD is MYR4.30 and the spot rate of the USD is MYR4.10. If Sirih Company uses a money market hedge, how much will it receive in 180 days?

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