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Based on the information below, determine if the interest rate parity holds (please show with calculation why it holds or why it does not hold)
- Based on the information below, determine if the interest rate parity holds (please show with calculation why it holds or why it does not hold)
European investor has 1 mn to invest.
1-year deposit rate in = 3%
1-year interest rate in Turkey=10%
1-year forward rate of EurTL= 8
Spot rate of EurTL=7
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Foundations In Personal Finance
Authors: Dave Ramsey
3rd Edition
1936948524, 978-1936948529
