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Consider the following: an investor in the United States is pondering a one-year investment. She can purchase a domestic bond for $1,000 that has an
Consider the following: an investor in the United States is pondering a one-year investment. She can purchase a domestic bond for $1,000 that has an interest rate of / or she can purchase a bond in England for 1,500 British pounds that pays an interest rate of is The current exchange rate is $1.50/1. She considers the bonds to be of equal risk. If /= if the expected returns are not equal. What do you know
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