Question
Assume the spot rate on the Canadian dollar is C$1.32 per $1 US dollar. The risk free nominal rate in the US is 4.6% while
Assume the spot rate on the Canadian dollar is C$1.32 per $1 US dollar. The risk free nominal rate in the US is 4.6% while it is only 3.8% in Canada. What is the approx 4 year forward rate if the if the interest rate parity holds?
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Essentials Of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
12th Edition
0030258723, 9780030258725
