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Group_1 Compute the Expected Uncovered Interest Differential for an American investor that has the possibility of investing in the United States or Uruguay. The investor
Group_1 Compute the Expected Uncovered Interest Differential for an American investor that has the possibility of investing in the United States or Uruguay. The investor starts with 1000 USD. I The interest rate of a government bond in Uruguay is 9% I The interest rate of a government bond in the US is 1% - Spot exchange rate: 40 Uruguayan pesos to 1 USD - Expected spot exchange rate in one year: 44 Uruguayan pesos to 1 USD (to get full credit in this question, you need to show your calculations)
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