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Assume that the Venezuelan one-year interest rate is 90 percent while the U.S. one-year interest rate is 6 percent. Determine the break-even value for the
Assume that the Venezuelan one-year interest rate is 90 percent while the U.S. one-year interest rate is 6 percent. Determine the break-even value for the percentage change in Venezuelas currency (the bolivar) that would cause the effective yield to be the same for a oneyear deposit in Venezuela as for a one-year deposit in the United States.
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