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= Assume the following information: Current spot rate of Swiss Franc (AUD/CHF) = 0.62 1-year forward rate (as of today) for Swiss Franc (AUD/CHF) =

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= Assume the following information: Current spot rate of Swiss Franc (AUD/CHF) = 0.62 1-year forward rate (as of today) for Swiss Franc (AUD/CHF) = 0.70 Expected spot rate one year from now (AUD/CHF) = 0.64 Rate on 1-year deposits denominated in Swiss Francs = 8% Rate on 1-year deposits denominated in Australian Dollars 9% From the perspective of an Australian investor with $1062355, taking advantage of covered interest arbitrage would yield a rate of return of = %. INSTRUCTIONS: 1. Round the answer to two decimal places. 2. Leave out the percentage sign

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