Question
Assume that the Australian one-year interest rate is 14 percent. Also assume that the Australian dollar is expected to appreciate by 8 percent over the
Assume that the Australian one-year interest rate is 14 percent. Also assume that the Australian dollar is expected to appreciate by 8 percent over the next year against the U.S. dollar. What is the expected effective yield on a one-year deposit in Australia by a U.S. firm?
Please explain as much as you can, thank you.
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Entrepreneurial Finance
Authors: Gary E. Gibbons, Robert D. Hisrich, Carlos Marques DaSilva
1st Edition
1452274177, 978-1452274171
