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Based on a quoted interest rate of 8% for the Brazilian real (R$), and depreciation in the R$ from $0.50 (on the day funds were

Based on a quoted interest rate of 8% for the Brazilianreal(R$), and depreciation in the R$ from $0.50 (on the day funds were borrowed) to $0.45 (on the day of loan repayment), what is the effective financing rate of a one-year loan from the viewpoint of a U.S. Firm?

Your answer: ________ (round to three decimal places)

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