Question
Assume that the one-year forward rate is used as the forecast of the future spot rate. The Malaysian ringgits spot rate is $.20 while its
Assume that the one-year forward rate is used as the forecast of the future spot rate. The Malaysian ringgits spot rate is $.20 while its one-year forward rate is $.19. The Malaysian oneyear interest rate is 11 percent. What is the expected effective yield on a one year deposit in Malaysia by a U.S. firm?
Please explain as much as you can, thank you
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Python For Finance
Authors: Yves Hilpisch
2nd Edition
1492024333, 978-1492024330
