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Assume that the U.S. one-year interest rate is 3% and the one-year interest rate on euros is 5%. You have $100,000 to invest and you

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Assume that the U.S. one-year interest rate is 3% and the one-year interest rate on euros is 5%. You have $100,000 to invest and you believe that the international Fisher effect (IFE) holds. The euro's spot exchange rate is $1.40. What will be the yield on your investment if you invest in euros? O 8% O 5% 03% 2.78%

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