Current exchange rates, 6 month forward exchange rates and risk free interest rates are as follows:<\/p>
SpotFwdSpotFwd<\/strong><\/p> Per C$Per C$Per US$Per US$<\/strong><\/p> Australian Dollars1.239011.228911.480381.47065<\/p> British Pounds0.5351740.54560.6394270.6495<\/p> Canadian Dollars1.001.001.19481.2231<\/p> Euro0.6559240.649930.7836990.7811<\/p> <\/p> Suppose interest rate parity holds.<\/p> <\/p> If the current six-month risk-free rate in the United States is 4.4%, what must the six-month risk-free rate be in Britain?<\/p>",
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"title": "Financial Reporting Financial Statement Analysis and Valuation",
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