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( LO 6 . 6 ) Adam has saved C $ 1 , 0 0 0 and plans to go surfing in Australia next summer.

(LO 6.6) Adam has saved C$1,000 and plans to go surfing in Australia next summer. He won't need the money for a year, so he decides to invest it. Adam could invest the money in Canada, where a T-bill will earn 4.5 percent, and then convert it to Australian dollars (AU$) just before he leaves. Alternatively, Adam could convert the funds today and invest in an Australian T-bill earning 5.2 percent. Which approach should he take if the currency spot rate is C$0.90431/AU$ and the one-year forward rate is C$0.89829/AU$?
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47.(LO 6.2) A 20-year semi-annual bond has just been issued with its coupon rate set at the current market yield of 6 percent. How much would the price of the bond change (in percentage terms) if
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